ACC 280 Week 3 Team Project-Executive Summary

ACC 280 Week 3 Team Project-Executive Summary - Executive...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Executive Summary Presentation 1 Executive Summary Presentation Learning Team B Philene Frazar Berri Norris Michelle Secrest Delores Oniyide-Smith Lovelle Young ACC-280 February 21, 2011 Professor George Peterson
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Executive Summary Presentation 2 E3-2 (a) What is the difference between accrual-basis accounting and cash-basis accounting? The difference between the two types of accounting takes place when revenues and expenses are recorded. In cash basis accounting, revenues are recorded when cash is actually received and expenses are recorded when they are actually paid (no matter when they were actually invoiced).Accrual basis accounting is the method of accounting most businesses and professionals are required to use by law. (b) Why would politicians prefer the cash basis over the accrual basis? Most state and local government budget on a cash or near-cash basis. Under the cash basis of accounting, governments recognize revenues when cash is received and expenditures when it is paid. But when preparing their annual financial statements, they must do so on an accrual basis of accounting. (c) Write a letter to your senator explaining why the federal government should adopt the accrual basis of accounting. Dear Congresswoman Lee: This letter is written to request your support for the accrual-based method of accounting for the State of Texas. Currently, as you are aware, the State of Texas is using the cash method of accounting. While we do believe that the average citizen understands the cash method of accounting easily and logically, the end results on the reports often produce misleading financial statements. As tax paying citizens of this great state, it is our right to have a clear understanding of how the money is spent.
Background image of page 2
Executive Summary Presentation 3 Additionally, the statement of revenue needs to be presented in a manner that is wholly
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/03/2011 for the course ACC 280 taught by Professor Peterson during the Spring '11 term at Alabama.

Page1 / 6

ACC 280 Week 3 Team Project-Executive Summary - Executive...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online