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ACC 561 Delayed Wage Payments Memorandum

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Accounting

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Memorandum

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Accounting Methods
ACC/ 561
May 23, 2019
Mr. Nyle Keller

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MEMORANDUM
TO: BizCon Management Team
FROM: Senior Accountant
DATE: May 23, 2019
SUBJECT: Delayed Wage Payments
CC: Chief Financial Officer
Although there are various types of accounting, however the ones that are being used are accrual-
basis and cash-basis accounting methods. All companies should discuss financial reporting
concepts, accounting principles (Kimmel, Weygandt, & Kieso, 2016). In return by discussing
these concepts will enable the management team to make the right decisions and the company
will be successful. Accrual accounting is accurate accounting even if cash was not exchanged,
transactions change a company’s financial statements in periods in which they occur
(Morah, n.d.). In accrual accounting, expenses, and revenues are recorded when the product or
service is incurred, and not when cash is exchanged (Morah, n.d.). In cash accounting
transactions are recorded the day when cash is paid or received regardless of the product or
service being incurred (Morah, n.d.).
Accrual- basis and cash- basis accounting methods are used to record transactions by BizCon. To
remain in compliance with the Generally Accepted Accounting Principles (GAAP), the company
uses the revenue recognition principle and the accrual-basis method for guidance (Kimmel,
Weygandt, & Kieso, 2016). The company's accounts have to be accurate in order to determine
their financial expenses and revenues. The preparer is guided by the principles of revenue and
expense recognition (Kimmel, Weygandt, & Kieso, 2016). BizCon growth was large and is a

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Accounting Methods ACC/ 561 May 23, 2019 Mr. Nyle Keller MEMORANDUM TO: FROM: DATE: SUBJECT: CC: BizCon Management Team Senior Accountant May 23, 2019 Delayed Wage Payments Chief Financial Officer Although there are various types of accounting, however the ones that are being used are accrualbasis and cash-basis accounting methods. All companies should discuss financial reporting concepts, accounting principles (Kimmel, Weygandt, & Kieso, 2016). In return by discussing these concepts will enable the management team to make the right decisions and the company will be successful. Accrual accounting is accurate accounting even if cash was not exchanged, transactions change a company’s financial statements in periods in which they occur (Morah, n.d.). In accrual accounting, expenses, and revenues are recorded when the product or service is incurred, and not when cash is exchanged (Morah, n.d.). In cash accounting transactions are recorded the day when cash is paid or received regardless of the product or service being incurred (Morah, n.d.). Accrual- basis and cash- basis accounting methods are used to record transactions by BizCon. To remain in compliance with the Generally Acc ...
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