{"id":113586,"date":"2023-01-26T08:58:02","date_gmt":"2023-01-26T08:58:02","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/cash-versus-accrual-accounting-adjusting-entries-acct-3001-intermediate-accounting-i-walden-university\/"},"modified":"2023-01-26T08:58:02","modified_gmt":"2023-01-26T08:58:02","slug":"cash-versus-accrual-accounting-adjusting-entries-acct-3001-intermediate-accounting-i-walden-university","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/cash-versus-accrual-accounting-adjusting-entries-acct-3001-intermediate-accounting-i-walden-university\/","title":{"rendered":"Cash versus accrual accounting, adjusting entries | ACCT 3001 &#8211; Intermediate Accounting I | Walden University"},"content":{"rendered":"<div>\n<p>\u00a0You have recently been hired by Davis &amp; Company, a small public accounting firm.\u00a0 One of the firm\u2019s partners, Alice Davis, has asked you to deal with a disgruntled client, Mr. Sean Pitt, owner of the city\u2019s largest hardware store.\u00a0 Mr. Pitt is applying to a local bank for a substantial loan to remodel his store.\u00a0 The bank requires accrual-based financial statements, but Mr. Pitt has always kept the company\u2019s records on a cash basis.\u00a0 He doesn\u2019t see the purpose of accrual-based statements.\u00a0 His most recent outburst went something like this: \u201cAfter all, I collect cash from customers, pay my bills in cash, and I am going to pay the bank loan with cash.\u00a0 And, I already show my building and equipment as assets and depreciate them.\u00a0 I just don\u2019t understand the problems.\u201d \u00a0<\/p>\n<p><strong>Required<\/strong>: Draft a memo to Mr. Pitt providing an explanation of why the bank requests accrual-based financial statements for loan requests such his.\u00a0 Include in the memo:<\/p>\n<ul>\n<li>An explanation of the difference between a cash basis and an accrual basis measure of performance than net operating cash flow.<\/li>\n<li>Why, in most cases, that accrual basis net income provides a better measure of performance than net operating cash flow.<\/li>\n<li>The purpose of adjusting entries as they relate to the difference between cash and accrual accounting.<\/li>\n<\/ul>\n<p><strong>Read<\/strong> a selection of your colleagues\u2019 postings.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>\u00a0You have recently been hired by Davis &amp; Company, a small public accounting firm.\u00a0 One of the firm\u2019s partners, Alice Davis, has asked you to deal with a disgruntled client, Mr. Sean Pitt, owner of the city\u2019s largest hardware store.\u00a0 Mr. Pitt is applying to a local bank for a substantial loan to remodel his [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"class_list":["post-113586","post","type-post","status-publish","format-standard","hentry","category-education"],"_links":{"self":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/113586","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/comments?post=113586"}],"version-history":[{"count":0,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/113586\/revisions"}],"wp:attachment":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/media?parent=113586"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/categories?post=113586"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/tags?post=113586"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}