Describe (100–120 words) the differences between cash and accrual accounting in relation to GST reporting. (Australia)
please type out your answer - its hard to read people's handwriting!
Cash accounting
Cash accounting tracks the actual money coming in and out of your business.
In cash accounting, if you get an invoice for something, you don't record the cost in your books until you've paid the invoice. Similarly, when you send an invoice to a customer, you don't record the sale in your books until you receive the money from the customer.
For example, if you send an invoice on Tuesday, and don't receive the payment in your account until Thursday, you record the income against Thursday's date in your books.
Accrual accounting
If you use accrual accounting, you record expenses and sales when they take place, instead of when cash changes hands.
For example, if you're a builder and have sent an invoice for a project you've completed, you record the sale in your books even though you haven't received payment yet.
This way of accounting shows the amounts you owe to people and the amounts owing to you.
Pros and cons
Cash accounting is:
Accrual accounting is:
Accrual accounting is more complicated than cash accounting so you'll need an in-depth understanding of bookkeeping methods or a professional to help you out.
Describe (100–120 words) the differences between cash and accrual accounting in relation to GST reporting. (Australia)...
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Assignment
Questions:
1.
One of the
differences between Managerial Accounting and Financial Accounting
is reporting flexibility. Financial reporting is restricted by
Generally Accepted Accounting Principles whereas reporting in
Managerial Accounting has fewer rules.
a)
Why is it
permissible to violate Generally Accepted Accounting Principles
when preparing reports used strictly by company
management?
b)
Should external
users always have the same information as internal users?
Explain.
2.
The United States
uses accounting standards developed by the Financial Accounting
Standards Board (FASB)...
Describe the similarities and differences between other non-profit organizations and government organizations based on the investigation of GASB standards. Give an example of the differences in regards to financial information, as well as the operations Note:Could you please don't use your handwriting to answer this question to be easy for me to solve...Thanks Could you please provide a new answer
Q1: In your own words, describe what you believe to be the differences between a standing wave in a string and a sound wave. Q2: In your own words, describe what you believe to be the similarities between a standing wave in a string and a sound wave. Q3: If a sound wave travels down a tube with a closed end (like a bottle) what happens to the wave when it gets to the closed end? 04: Why do you...
To describe the phase relation between current and voltage, we use particular words: In the circuit represented by these phasors, the current the voltage, leads lags is perpendicular to is out of phase with The appropriate answer here is B although C and D are also correct. Explain what answer B means: A capacitor has a peak current of 330 mu A when the peak voltage at f = 250 kHz is 2.2 V. What is the capacitance C? If...
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