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:

PET

Positron Emission Tomography, a nuclear medicine functional imaging technique used to observe metabolic processes in the body as an aid to the diagnosis of diseases.

Motor Functions

The physiological capacities and activities related to the movement of body parts controlled by the nervous system.

Recognition

The cognitive process of identifying and acknowledging the presence of something previously seen, heard, or experienced.

Reading

The process of interpreting written symbols and comprehending them as words or sentences.