Cashback Offer from 20th to 31st January 2021. Get Flat 10% Cashback credited to your account for a minimum transaction of $80. Post Your Question Today!

Question Details Normal
$ 10.00

Accounting Methods

  • From Business, Accounting
  • Due on 02 Jun, 2018 12:00:00
  • Asked On 28 May, 2018 11:26:07
  • Due date has already passed, but you can still post solutions.
Question posted by
Online Tutor Profile
request

Scenario: BizCon, a consulting firm, has just completed its first year of operations. The company's sales growth was explosive. To encourage clients to hire its services, BizCon offered 180-day financing - meaning its largest customers do not pay for nearly 6 months. Because BizCon is a new company, its equipment suppliers insist on being paid cash on delivery. Also, it had to pay up front for 2 years of insurance. At the end of the year, BizCon owed employees for one full month of salaries, but due to a cash shortfall, it promised to pay them the first week of next year. 

As the senior accountant, the Chief Financial Officer has asked you to prepare a memo to be sent to management notifying them of the delayed wage payments. 

Prepare the memo in a maximum 700 words including the following information to better outline the situation:

  • Explain how cash and accrual accounting differs for each of the events listed in the above scenario and describe the proper accrual accounting.
  • Assess how at the end of the year, BizCon reported a favorable net income, yet the company's management is concerned because the company is very short of cash. Explain to management how BizCon could have positive net income and yet run out of cash.

Format your assignment consistent with APA guidelines. 

Available Answers
$ 13.00

[Solved] Accounting Methods paper

  • This Solution has been Purchased 1 time
  • Submitted On 01 Jun, 2018 07:41:51
Answer posted by
Online Tutor Profile
solution
Scenario: BizCon, a consulting firm, has just completed its first year of operations. The company's sales growth was explos...
Buy now to view the complete solution

The benefits of buying study notes from CourseMerit

Assurance Of Timely Delivery
We value your patience, and to ensure you always receive your homework help within the promised time, our dedicated team of tutors begins their work as soon as the request arrives.
Best Price In The Market
All the services that are available on our page cost only a nominal amount of money. In fact, the prices are lower than the industry standards. You can always expect value for money from us.
Uninterrupted 24/7 Support
Our customer support wing remains online 24x7 to provide you seamless assistance. Also, when you post a query or a request here, you can expect an immediate response from our side.
closebutton
Only 45 characters allowed.
closebutton

$ 629.35