2. 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): At Pepsi Marie ordered on account a total of 100 cases of soft drinks, to be delivered half on Thursday and the other half on Saturday, for a $7.99 a case plus a $2.40 per case deposit.
2. 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): At Pepsi Marie ordered on account a total of 100 cases of soft drinks, to be delivered half on Thursday and the other half on Saturday, for a $7.99 a case plus a $2.40 per case deposit.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:2. 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): At Pepsi Marie ordered on account a
total of 100 cases of soft drinks, to be delivered half on Thursday and the other half on Saturday, for a $7.99 a case plus a $2.40 per
case deposit.
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