Anne Marie, the owner of Anne’s Beauty Salon, comes to see you again. She tells you that she just got her year-end set of financial statements from her accountant and is more confused. Here are her questions.
1. I have very little cash and yet he says that I had a good year with $15,000 net income. He said it was because we use accrual accounting (whatever that means). I know I paid 6 month’s rent ($1,400 a month) in advance at the end of the year. I also paid my insurance for the next year. Insurance cost $6,000. I have several customers who had a lot of services done on credit and haven’t paid yet. I think that totals $2,000 owed to me. Can you explain?
2. I was paid $200 in advance for some hair coloring I will do in January. He tells me that’s a liability. That doesn’t make any sense to me? Please explain.
3. In December I did several hair several haircuts during the last week of the year and sent bills to all the customers? When is that counted?
How would you answer these questions?
Need Help Writing an Essay?
Tell us about your assignment and we will find the best writer for your paper.
Write My Essay For MeEssay mills – Financial Accounting Essay writing services – Assignment Research Writing Service.
Custom academic and business writing services. You made my dreams come true! I got better results than any other student for a very complex capstone project! Your company is very helpful. Thanks! Would you like to make your academic life easier? We offers you a perfect chance to buy essays online and let our writers take care of your academic achievements! Each paper is composed from scratch, according to your instructions
Ask for Instant Assignment Writing Help. No Plagiarism Guarantee!
