week 2_ accounting methods

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Purpose of Assignment 

This week's activity illustrates the role a company's accounting method plays in financial statement reporting. In this assignment, students evaluate the events occuring in a business setting and determine how to properly analyze those events to identify the impact on both cash and accrual accounting methods. 

Resources 
  • Generally Accepted Accounting Principles (GAAP), U.S. Securities and Exchange Commission (SEC) 
  • Tutorial help on Excel and Word functions can be found on the Microsoft Office website. There are also additional tutorials via the web offering support for Office products. 
Assignment Steps

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 500 words using business writing (see week 1) 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.

USE the memo template provided in week 1 for formatting. ONLY use APA for citations and references.

Submit your assignment.


*** Memo Template has been attached***

  • Posted: 14 days ago
  • Due: 
  • Budget: $8
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    Accounting Methods

    Assignment Steps

    Resources:

    · Generally Accepted Accounting Principles (GAAP), U.S. Securities and Exchange Commission (SEC)

    · Tutorial help on Excel® and Word …

  • Rated 1 times

    Accounting Methods

    MUST READ & FOLLOW INSTRUCTIONS! SEE ATTACHED

    Assignment Steps

    Resources: Generally Accepted Accounting Principles (GAAP), U.S. Securities and Exchange Commission (SEC)

  • Rated 1 times

    Accounting Methods

    Purpose of Assignment

    This week's activity illustrates the role a company's accounting method plays in financial statement reporting. In this assignment, students evaluate the events …

  • Rated 1 times

    Accounting Methods

    Purpose of Assignment

    This week's activity illustrates the role a company's accounting method plays in financial statement reporting. In this assignment, students evaluate the events …

  • Rated 2 times

    week2

  • Rated 1 times

    Accounting Methods

    Purpose of Assignment

    This week's activity illustrates the role a company's accounting method plays in financial statement reporting. In this assignment, students evaluate the …

  • Assignment Content

    1. Purpose of Assignment


      This week's activity illustrates the role a company's accounting method plays in financial statement reporting. In this assignment, …

  • Rated 2 times

    aCCOUNTING mETHODS

    Purpose of Assignment

    This week's activity illustrates the role a company's accounting method plays in financial statement reporting. In this assignment, students evaluate the events occurring in a …

  • Purpose of Assignment

    This week's activity illustrates the role a company's accounting method plays in financial statement reporting. In this assignment, students evaluate the events occuring in …

  • Purpose of Assignment This week's activity illustrates the role a company's accounting method plays in financial statement reporting. In this assignment, students evaluate the events …