A Company Maintains Its Records Using Cash-Basis Accounting

question 13

Essay

A company maintains its records using cash-basis accounting.During the year,the company received cash from customers,$34,000,and paid cash for taxes,$24,000.At the beginning of the year,customers owe the company $3,000.By the end of the year,customers owe $5,000.At the beginning of the year,the company owes taxes of $4,000.At the end of the year,the company owes taxes of $5,000.Determine cash-basis net income and accrual-basis net income for the year.

---

Definitions:

Text Fill

The process or feature of adding color or patterns inside the area of a text to enhance visual impact.

Multiple Pages View

A feature in document editing and viewing software that allows users to see several pages of a document at once.

Side by Side View

A feature in many applications that allows two documents or windows to be viewed simultaneously, next to each other.