Question 1
A. Create a transaction from a work setting where there is a difference between
when an expense or revenue occurs and
when cash is paid or cash is received.
Include dates to record revenue or expense on April 14 and cash payment or receipt on May 14.
B. Assume the firm uses cash basis accounting. As of April 30,
what would be recorded as expense or revenue and
what would be recorded as payable or receivable?
C. Assume the firm uses accrual accounting. As of April 30,
what would be recorded as expense or revenue and
what would be recorded as payable or receivable?