1. Explain what are the differences if accrual or cash accounting is used to account for the following hypothetical situation (explain the. concept using the matching principle and illustrate with numbers each accounting treatment): Marie went to City Hall to pay for the following: Booth Permit ($40.00), Cleaning deposit ($200.00) which refundable after the booth area is clean, City of Montreal Health Inspection fee ($150.00), and the Water, Drain, and Electricity connections and dismantle after the event ($200.00).

1. Explain what are the differences if accrual or cash accounting is used to account for the following hypothetical situation (explain the. concept using the matching principle and illustrate with numbers each accounting treatment): Marie went to City Hall to pay for the following: Booth Permit ($40.00), Cleaning deposit ($200.00) which refundable after the booth area is clean, City of Montreal Health Inspection fee ($150.00), and the Water, Drain, and Electricity connections and dismantle after the event ($200.00).

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter3: Business Income And Expenses

Section: Chapter Questions

Problem 13MCQ

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