{"id":33288,"date":"2022-02-15T23:34:20","date_gmt":"2022-02-15T23:34:20","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/scenario-bizcon-a-consulting-firm-has-just-completed-its-first\/"},"modified":"2022-02-15T23:34:20","modified_gmt":"2022-02-15T23:34:20","slug":"scenario-bizcon-a-consulting-firm-has-just-completed-its-first","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/scenario-bizcon-a-consulting-firm-has-just-completed-its-first\/","title":{"rendered":"Scenario: bizcon, a consulting firm, has just completed its first…"},"content":{"rendered":"
\n

\u00a0Scenario: BizCon, a consulting firm, has just completed its first…<\/strong><\/p>\n

Scenario: Prepare<\/h2>\n

BizCon, a consulting firm, has just \u00a0completed its first year of operations. The company’s sales growth was \u00a0explosive. To encourage clients to hire its services, BizCon offered \u00a0180-day financing – meaning its largest customers do not pay for nearly 6 \u00a0months. Because BizCon is a new company, its equipment suppliers insist \u00a0on being paid cash on delivery. Also, it had to pay up front for 2 \u00a0years of insurance. At the end of the year, BizCon owed employees for \u00a0one full month of salaries, but due to a cash shortfall, it promised to \u00a0pay them the first week of next year.\u00a0<\/p>\n

As the senior accountant, the Chief Financial Officer has asked you \u00a0to prepare a memo to be sent to management notifying them of the delayed \u00a0wage payments.\u00a0<\/p>\n

the memo in a maximum 700 words including the following information to better outline the situation:<\/p>\n

    \n
  • Explain how cash and accrual accounting differs for each of the events listed in the above scenario and describe the proper accrual accounting.<\/li>\n
  • Assess how at the end of the year, BizCon reported a favorable net income, yet the company’s management is concerned because the company is very short of cash. Explain to management how BizCon could have positive net income and yet run out of cash.<\/li>\n<\/ul>\n

    \u00a0\u00a0<\/p>\n

    Scenario: <\/strong>BizCon, a consulting firm, has just completed its first year of operations. The company’s sales growth was explosive. To encourage clients to hire its services, BizCon offered 180-day financing – meaning its largest customers do not pay for nearly 6 months. Because BizCon is a new company, its equipment suppliers insist on being paid cash on delivery. Also, it had to pay up front for 2 years of insurance. At the end of the year, BizCon owed employees for one full month of salaries, but due to a cash shortfall, it promised to pay them the first week of next year.\u00a0<\/p>\n

    As the senior accountant, the Chief Financial Officer has asked you to prepare a memo to be sent to management notifying them of the delayed wage payments.\u00a0<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

    \u00a0Scenario: BizCon, a consulting firm, has just completed its first… Scenario: Prepare BizCon, a consulting firm, has just \u00a0completed its first year of operations. The company’s sales growth was \u00a0explosive. To encourage clients to hire its services, BizCon offered \u00a0180-day financing – meaning its largest customers do not pay for nearly 6 \u00a0months. Because BizCon […]<\/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-33288","post","type-post","status-publish","format-standard","hentry","category-education"],"_links":{"self":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/33288","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=33288"}],"version-history":[{"count":0,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/33288\/revisions"}],"wp:attachment":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/media?parent=33288"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/categories?post=33288"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/tags?post=33288"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}