Cash account and accrual accounting are two separate methods that are similar in many aspects except when it comes to debits and credits. Cash accounting is also known to be called cash basis accounting. This approach allows for the recognition of income at the time it is received. That means that invoiced income is not counted as an asset until payment for the invoice has been received and vice versa for debits and expenses. Accrual accounting does not recognize any income until it is actually earned
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Current status of public sector accounting in Malaysia- Cash Basis Accounting Revenue is only recorded when the cash is actually exchanged for example‚ when revenue is received as cash and when expenses are actually paid. http://www.quora.com/What-are-the-differences-between-cash-basis-and-accrual-basis-accounting Why government used the cash basis of accounting? Easy to learn and carry out and requires care but no special accounting skills. Well-adapted to needs of budgetary control and payment
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Case Analysis of Whole Foods Decides to Open in Detroit Company Background Whole Foods Market‚ Inc. is an American foods supermarket chain specializing in finest natural and organic foods with locations in the United States‚ Canada and the United Kingdom. It was founded by John Mackey and his girlfriend Rene Lawson on September 20‚1980‚ and today Whole Foods Market is headquartered in Austin‚ Texas. The current CEO is the founder John Mackey. Whole foods Market is the largest U.S. retailer of natural
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The Cash Connection Strategic Management Abstract The payday lending industry is a very competitive industry established in the 1990’s‚ designed to give citizens the option to receive a quick fix regarding financial issues‚ in an effort to make ends meet. The main objective for those in the payday loan industry “should be to serve customers in compliance with the rules of the industry and better educate them on the services and products they offer” (Personal Communications‚ 2012). This industry
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Check list Project Finance Information required 1. Brief description of every project sponsor: company history‚ establishment date‚ legal form‚ ownership‚ subsidiaries‚ core activities. Data on sponsor’s experience in the host country and in the project’s industry. Explanation of how the project relates to the sponsor’s strategic direction/goals. 2. Annual reports of the past three years for every project sponsor. Additional requirements in the case of project finance for activities
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Ruth Ganley ACCTG 400 Module 2 Case 6-2 Cash Versus Credit It’s almost Christmas time and you still need to buy presents for eleven relatives. Although you plan to work over the semester break to earn some extra money‚ your current cash resources are low --- you have only $250 in your checking account‚ and you still need to pay your half of the phone bill ($50) before you leave for home. However‚ you do have a Target card (current balance $1‚000) and the lender recently sent you a notice
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workers are employed. Only the owner manages the business activities. From morning at 9 o’clock sharp‚ Fitted Enterprises opens for business. At 12 noon there is a 2 hour lunch break. Many policies have been implemented. For instance‚ credit is allowed. Cash is definitely the most preferred means of payment. Customers are allowed to return goods within a 30 day limit. Hats returned are to be thoroughly accessed. This assessment determines if the goods will be refunded. There are only three assets; furniture
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So it should do the risk management. The analysis structure will be that: (1) Define the risk source: the exchange rate flucturation‚ the cash flows of different currencies from asset change‚ account receivable and account payable. (2) Define the scope of risk control: the natural currency settlement hedging‚ the overflow exchange currency‚ the future cash flow‚ the future potential expansion on business. (3) select the hedging tools: forward exchange‚ options‚ or futures. What is the portfolio
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significant development during the financial year. Depending on the change in the FX rate‚ the company can react appropriately in order to compensate for the negative impact. The long-term effects of such an event in the world market imply that the cash flows are negatively impacted beyond five years. In the case where a certain currency may fall significantly causing regional economy to enter a recession will impact firms at a global level. Regardless of the firm serving a domestic market or a
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Option 5 Discuss an accomplishment or event‚ formal or informal that marked your transition from childhood to adulthood within your culture‚ community‚ or family. For many teenagers‚ having a job is a way of making money‚ just a way of having extra cash for clothes or going out with friends. It makes one feel independent. Personally‚ it made me feel sort of like an adult. It taught me how to be responsible and to handle my finances. I had to learn how to take public transportation‚ how to interact
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