Discuss why it might not be sufficient for a small business person who is carrying on business

Question:

Discuss why it might not be sufficient for a small business person who is carrying on business as a sole trader to prepare accounts on a cash flow basis.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial Accounting And Reporting

ISBN: 9781292255996

19th Edition

Authors: Barry Elliott, Jamie Elliott

See More Books

Question Posted: Nov 02, 2022 02:16 AM

See More Questions

Why is it so important for a small business owner to develop a management succession plan? Why is it so difficult for most business owners to develop such a plan? What are the steps that are involved...
Discuss why it might be important to your client to adopt International Accounting Standards even though they are currently only operating domestically throughout the central part of the United...
Why is it important for a small business owner to create a plan for establishing a competitive advantage?
Explain why it has been suggested that the new rules in IFRS 16 could bring the biggest shake-up to retailers financial statements for decades.
The National Highway Traffic Safety Administration has studied the use of rear-seat auto-mobile lap and shoulder seat belts. The number of lives potentially saved with the use of lap and shoulder...
Without exceeding an error of 1%, what is the minimum water velocity that can be obtained using a 1.5 mm circular stagnation tube if the formula V = 2p stag / = 2gh stag is used for computing the...
Describe an asset that is sold on the secondary capital market and is a futures asset.
On May 1, Athens Inc. began the manufacture of a new mechanical device known as Snap. The company installed a standard cost system in accounting for manufacturing costs. The standard direct materials...
What should they do about the issue of their respective ownership stakes, and the issue that DArcy has raised?
Supermart Food Stores (SFS) has experienced net operating losses in its frozen food products line in the last few periods. Management believes that the store can improve its profitability if SFS...
Unrealised operating cash flows are only of use for internal management purposes and are irrelevant to investors. Discuss.
Explain why realised cash flow might not be appropriate for investors looking to predict future dividends.
In each of the following cases indicate the principle that appears to have been violated: Case A For its factory equipment, Unrequited Love Inc. used accelerated depreciation in 20X2; straight-line...
In 2024, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2026. Information related to the contract is...
Briefly describe the case you have chosen. Categorize the social worker's experience as vicarious trauma, compassion fatigue, or burnout. Provide justification. Identify the social worker's score on...
Given f(x) below, find f'(x). f(x) = = m 5z In (2) et dt
Olsen & Alain, CPAs (O&A) performed the audit of Rocky Point Brewery (RPB), a public company in 20X1 and 20X2. In 20X2, O&A also performed tax services for the company. Which statement best describes...
Exercise 9-4 (Algo) Prepare a Flexible Budget Performance Report [LO9-4] Vulcan Flyovers offers scenic overflights of Mount Saint Helens, the volcano in Washington State that explosively erupted in...
If 200 cars are selected at random, how many will be traveling faster than 70 mph? Assume that the speed of automobiles on an expressway during rush hour is normally distributed with a mean of 62 mph...
Suppose that a company has 10.000 outstanding shares in the beginning of the year. On April 1st, the company increases its shares by 6.000. On July 1st, the company increases its shares again, but...
HK Ltd has prepared its draft trial balance to 30 June 20X1, which is shown below. The following information is available: (a) The authorised share capital is 4,000,000 9% preference shares of $1...
Phoenix plc trial balance at 30 June 20X7 was as follows: The following information is available: 1. Freehold premises acquired for £1.8 million were revalued in 20X4, recognizing a gain of...
The following is an extract from the trial balance of Imecet at 31 October 2005: .:. Other relevant information: (i) One million $1 Ordinary shares were issued 1 May 2005 at the market price of...
Duncan Inc. issued 500, $1,200, 8%, 25 year bonds on January 1, 2020, at 102. Interest is payable on January 1. Duncan uses straight-line amortization for bond discounts or premiums. INSTRUCTIONS:...
WISE-HOLLAND CORPORATION On June 15, 2013, Marianne Wise and Dory Holland came to your office for an initial meeting. The primary purpose of the meeting was to discuss Wise-Holland Corporation's tax...
Stock in ABC has a beta of 0.9. The market risk premium is 8%, and T-bills are currently yielding 5%. The company's most recent dividend is $1.60 per share, and dividends are expected to grow at a 6%...

Discuss why it might not be sufficient for a small business person who is carrying on business

Question:

Step by Step Answer:

A cash flow basis does not include all of the transactions that have oc...View the full answer

Financial Accounting And Reporting

Students also viewed these Business questions