Impact of Promotional Methods Essay

631 Words3 Pages
From the scenarios, Erica and Chris have determined their weaknesses after performing a SWOT analysis. However, they have yet to identify opportunities for their business. Determine two potential opportunities specific to their restaurant’s business environment, and discuss how the partners can take advantage of these opportunities. Discuss a situation where you were influenced by an infomercial, attractive packaging, and a discount flyer to purchase a product, and explain why you think the promotional method made such an impact on you. I believe one of their potential opportunities is proximity to their ideal client base. They could pass out menus for catering, dining or even take out menus to cater to some of the businesses as…show more content…
Advantages of accrual basis accounting 1. Incorporates expenses and revenue at the same time 2. More accurate financial statements 3. Recognizes expenses and revenues when performed rather when paid Disadvantages of accrual basis accounting 1. Special rules apply to this form 2. Transactions recorded at the time it happens Advantages of cash basis accounting 1. Only records revenue and expenses when they are paid either way. 2. It’s a very in expensive system to use 3. More simple system to use Disadvantages of cash basis accounting 1. Misleading financial statements. 2. Fails to record services performed but not paid yet 3. Does not match expenses with revenues. I believe that each of these could be good for your business just depending on the business. Like to use the cash-basis you would need a business that does not have a lot of receivables and payables. If you have more receivables and payables I would suggest that you pay a little more money for the accrual basis you’re more likely to have a bigger business anyways. The revenue recognition principle recognizes revenue in the accounting period in which the performance obligation is satisfied. The expense recognition principle match expenses with revenues in the period when the company makes efforts to generate those revenues. If they waited until the end of the year to make all these entries it would be crazy look at tax time how people are. Now look at a company that has hundreds or even
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