Week 3

Question 1

Periodicity Assumption

Answer 1

Reporting based on a set time frame, annual, quarterly and etc.

Question 2

Questions you should ask a new client

Answer 2

How to map charts of accounts and how they look at their budget, annual, quarterly or monthly

Question 3

Revenue Recognition

Answer 3

an accounting principle that asserts that revenue must be recognized as it is earned

Question 4

Deferred Revenue

Answer 4

is an advanced payment or unearned revenue example, paid to mow a lawn you haven’t done yet

Question 5

Matching Principle

Answer 5

matching revenue with the matching expense

Question 6

Cash-Basis accounting

Answer 6

reporting when cash is in hand from the revenue

Question 7

Pros of Cash-Basis accounting

Answer 7

simple to use

Question 8

Cons of Cash-Basis accounting

Answer 8

vague

Question 9

Accrual Accounting

Answer 9

revenue and expenses are reported when they have accrued not when they are paid, mowed a lawn last week so i recorded everything last week

Question 10

Pro accrual accounting

Answer 10

Better financial picture

Question 11

Cons of accrual accounting

Answer 11

more complicated to use

Question 12

Hybrid method of accounting

Answer 12

Combination of both cash and accrual