o companies like Walmart use accru
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Why do companies like Walmart use accrual basis accounting rather than cash basis accounting?
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- What is the effect on the fundamental accounting equation if supplies are purchased on account? How will the fundamental accounting equation change if supplies are purchased with cash? Explain how this purchase will or will not change the owners equity.What is the effect on the accounting equation when a business pays the balance due on accounts payable?Which of the following statements is true? Under cash-basis accounting, revenues are recorded when a company satisfies its performance obligations and expenses are recorded when incurred. Accrual-basis accounting records both cash and noncash transactions when they occur. Generally accepted accounting principles require companies to use cash-basis accounting. The key elements of accrual-basis accounting are the revenue recognition principle, the expense recognition principle, and the historical cost principle.
- Assume a company has a $350 credit (not cash) sale. How would the transaction appear if the business uses accrual accounting? A. $350 would show up on the balance sheet as a sale. B. $350 would show up on the income statement as a sale. C. $350 would show up on the statement of cash flows as a cash outflow. D. The transaction would not be reported because the cash was not exchanged.What is the effect on the accounting equation when a business purchases supplies on account?How would you describe the difference between cash basis accounting and accrual basis accounting? What types of companies are required to use accrual basis of accounting? Are there any companies that can use cash basis accounting?
- Distinguish between cash-basis accounting and accrual basis accounting. Why is accrual-basis accounting acceptable for most businesses and the cash-basis unacceptable in the preparation of an income statement and a balance sheet?When does a cash basis corp have to request a change in accounting methods?istinguish between cash-basis accounting and accrual-basis accounting. Why is accrual-basis accounting acceptable for most businesses and the cash-basis unacceptable in the preparation of an income statement and a balance sheet?
- How does paying cash for purchase of supplies affect the accounting equation?Which of the following is true of accrual basis accounting and cash basis accounting? Accrual accounting records revenue only when it is earned. Accrual accounting is not allowed under GAAP. Cash basis accounting records all transactions. All of the above are true.how will a change from cash basis accounting to accural basis accounting positively and negatively affect the business reporting?
