1. Explain what are the differences if accrual or cash accounting is used to account for the following hypothetical situation (explain the concept using the matching principle and illustrate with numbers each accounting treatment): Marie went to City Hall to pay for the following: Booth Permit ($40.00), Cleaning deposit ($200.00) which refundable after the booth area is clean, City of Montreal Health Inspection fee ($150.00), and the Water, Drain, and Electricity connections and dismantle after the event ($200.00).

1. Explain what are the differences if accrual or cash accounting is used to account for the following hypothetical situation (explain the concept using the matching principle and illustrate with numbers each accounting treatment): Marie went to City Hall to pay for the following: Booth Permit ($40.00), Cleaning deposit ($200.00) which refundable after the booth area is clean, City of Montreal Health Inspection fee ($150.00), and the Water, Drain, and Electricity connections and dismantle after the event ($200.00).

Business Its Legal Ethical & Global Environment

10th Edition

ISBN:9781305224414

Author:JENNINGS

Publisher:JENNINGS

Chapter18: Governance And Structure: Forms Of Doing Business

Section: Chapter Questions

Problem 8QAP

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1. Explain what are the differences if accrual or cash accounting is used to account for the following hypothetical situation (explain the
concept using the matching principle and illustrate with numbers each accounting treatment): Marie went to City Hall to pay for the
following: Booth Permit ($40.00), Cleaning deposit ($200.00) which refundable after the booth area is clean, City of Montreal Health
Inspection fee ($150.00), and the Water, Drain, and Electricity connections and dismantle after the event ($200.00).

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1. Explain what are the differences if accrual or cash accounting is used to account for the following hypothetical situation (explain the concept using the matching principle and illustrate with numbers each accounting treatment): Marie went to City Hall to pay for the following: Booth Permit ($40.00), Cleaning deposit ($200.00) which refundable after the booth area is clean, City of Montreal Health Inspection fee ($150.00), and the Water, Drain, and Electricity connections and dismantle after the event ($200.00).
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