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Cash Basis Accounting and Accrual Accounting Proctored Assignment Questions with correct and perfect Answers Latest May 2024 For Assured A+ Grade Affiliate Institution Due Date: 20/05/2024$17.49
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Cash Basis Accounting and Accrual Accounting Proctored Assignment Questions with correct and perfect Answers Latest May 2024 For Assured A+ Grade Affiliate Institution Due Date: 20/05/2024
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Course
Accounting and Accrual Accounting
Institution
Accounting And Accrual Accounting
Cash Basis Accounting and Accrual Accounting
Proctored Assignment Questions with correct and perfect Answers Latest May 2024 For Assured A+ Grade
Affiliate Institution
Due Date: 20/05/2024
Instructions: Using the information provided, you are to write a report on accrual vs cash accounting. ...
Proctored Assignment Questions with correct and perfect
Answers Latest May 2024 For Assured A+ Grade
Affiliate Institution
Due Date: 20/05/2024
Instructions: Using the information provided, you are to write a report on accrual vs cash
accounting. The report must be word-processed and set out using the correct format, including an
introduction and body.
The report must also contain appropriate headings and subheadings and include a bibliography of
any reference materials used. You can provide one (1) draft for review. 2 Task: An ordinary
businessman, without experience in Accounting, may think that his profit is Cash Receipts less
Cash Payments for the period, whereas the Accounting Profession worldwide follows the Accrual
Accounting Method.
1. Briefly describe these two methods for calculating performance of an accounting period.
2. Examine the advantages and disadvantages of both approaches.
, 3. The Accrual method, though used very commonly, may allow Accountants to become creative
by increasing or decreasing profit of the period to their advantage. Provide two specific examples
how accountants can manipulate profit in Accrual Accounting. Suggestions Introduction Briefly
provide an introduction about what you are intending to talk about in the body of the essay.
Body: 1. There are two methods for calculating profit; explain each method by describing what
happens under a) Cash Accounting and b) Accrual Accounting. You may describe each by using
examples of calculations / transactions.
2. Both methods have advantages and disadvantages. Cash Accounting, for example, is simple to
use as ‘revenues’ are recorded only when cash is received, and ‘expenses’ are recorded only when
cash is paid; However, Accrual Accounting records ‘revenues’ when services/goods are sold, and
records ‘expenses’ when resources/assets are used up. Accrual Accounting is more complex but
provides a more accurate measurement of Profit.
Discuss 2 advantages and 2 disadvantages of each method. 3. Accrual accounting is more
susceptible to ‘creative’ Accounting, which means that the Net Profit can be manipulated more
easily. Provide 2 examples to show how revenues or expenses can be manipulated to change the
Profit of a given period. Hint: Consider Depreciation and Bad Debt Expense Accounting. Show
how these accounts can be used to manipulate Profit and therefore Tax. Numerical examples are
highly recommended as part of your explanation.
3 Conclusion: Overall, which method is preferable and why? Bibliography: List (in alphabetical
order) the resources you have used in the essay. You should refer to at least 2 references (textbook,
lecture notes, other texts). You must also ‘cite’ the reference in the body when you are using a
source (refer to ‘referencing guide’ for Accounting given in EAP). Thank you!
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