4. Answer the questions about accounting treatment. 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 revenue recognition and illustrate with numbers each accounting treatment): Mary serviced the event and received 1/3 of the payment $2,000 in cash and client promised to pay the remaining $4,000 next month. In addition, May received $1,000 deposit for servicing birthday party next month. 2. Explain what are the differences if accrual or cash accounting is used to account for the following situation (explain the concept using the matching principle and illustrate with numbers each accounting treatment): Marie paid $70 for a phone bill she received last month, and Marie also paid $80 for current month's phone bill. 截图(Alt + A)

4. Answer the questions about accounting treatment. 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 revenue recognition and illustrate with numbers each accounting treatment): Mary serviced the event and received 1/3 of the payment $2,000 in cash and client promised to pay the remaining $4,000 next month. In addition, May received $1,000 deposit for servicing birthday party next month. 2. Explain what are the differences if accrual or cash accounting is used to account for the following situation (explain the concept using the matching principle and illustrate with numbers each accounting treatment): Marie paid $70 for a phone bill she received last month, and Marie also paid $80 for current month's phone bill. 截图(Alt + A)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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