W2A1 - If I were to choose which accounting method to use...

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If I were to choose which accounting method to use for my business, I would have to choose the cash basis method. With the cash basis method, income is counted for when it is received, and expenses are counted for when it is paid. The accrual method can be misleading and hard to understand. This method does have its advantages, like accurately showing the flow of income. But the income statement may show thousands of dollars and my bank account is empty. The cash basis method accurately shows how much money my business has. It is extremely important to make journal entries and financial statements. This allows a businesses to keep track of income and expenses. Then businesses can tell if they have made money or have loss money and if a change is needed. I found four accounting systems that can help me with my accounting needs. Multiview, which includes 14 modules to help organizations manage its financials, analyze its assets and report on its cash
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Unformatted text preview: Fow. Intacct, which o³ers reporTng, forecasTng, performance management and invoicing, Netsuite, includes customer markeTng, HR and inventory management modules. Microso´ dynamics, is used in government agencies, manufacturers, technology companies and nonpro²t organizaTons. Rite Aid Sales 25.53 Bil Income 249.41 Mil Net Pro²t Margin 0.84% Revenue/Share 26.07 Earnings/Share 0.23 Book Value/Share -2.18 Rite aid is an extremely pro²table company with sales and income reaching the millions. I would think this company uses the accrual basis method because of the vast amount of sales and future pro²tability. ±he revenue does represent the cash received by the customers. Cost of goods sold represents the amount of money paid for merchandise and any addiTonal cost (shipping)....
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  • Fall '15
  • DanaLeland
  • Accounting, Revenue, Generally Accepted Accounting Principles, NetSuite, cash basis method

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