Purpose of Assignment
This week's ghost illustrates the role a crew's accounting process plays in financial assertion reporting. In this assignment, students evaluate the events occuring in a concern setting and determine how to suitably dissect those events to establish the contact on twain coin and accrual accounting processs.
Generally Accepted Accounting Principles (GAAP), U.S. Securities and Exchange Commission (SEC)
Tutorial aid on Excel and Word functions can be establish on the Microsoft Office website. There are as-well added tutorials via the web donation living for Office products.
Scenario: BizCon, a consulting fast, has regular completed its leading year of operations. The crew's sales enlargement was explosive. To suffer clients to commission its services, BizCon offered 180-day financing - aim its largest customers do not pay for closely 6 months. Owing BizCon is a new crew, its equipment suppliers demand on being remunerated coin on bestowal. Also, it had to pay up front for 2 years of prophylactic. At the end of the year, BizCon becoming employees for one liberal month of salaries, but due to a coin limitedfall, it promised to pay them the leading week of instant year.
As the greater accountant, the Chief Financial Officer has asked you to lay a memo to be sent to government notifying them of the past wage payments.
Prepare the memo in a apex 500 signification using concern despatches (see week 1) including the aftercited instruction to emend plan the situation:
Explain how coin and accrual accounting differs for each of the events listed in the overhead scenario and narrate the equitable accrual accounting.
Assess how at the end of the year, BizCon reported a friendly net allowance, yet the crew's government is solicitous owing the crew is very limited of coin. Explain to government how BizCon could keep actual net allowance and yet run out of coin.
USE the memo template granted in week 1 for formatting. ONLY use APA for citations and references.
Submit your assignment.
*** Memo Template has been rooted***