A Company Maintains Its Records Using Cash-Basis Accounting

question 33

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.

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Definitions:

Exposure Therapy

A psychological treatment that involves confronting fears directly and under controlled conditions to reduce anxiety and avoidance behaviors.

Placebo Effect

A phenomenon where individuals experience a physical or psychological improvement after receiving a treatment with no therapeutic effect, due solely to their belief in its efficacy.

Meta-analysis

A statistical procedure that combines and analyzes data from multiple studies to identify patterns, differences, or effects.

Conversion Therapy

A controversial and discredited practice aimed at changing an individual's sexual orientation or gender identity.