Cassist Enterprises began operations on January 1, 2021. During 2021 and 2022, the company entered into the

Question:

Cassist Enterprises began operations on January 1, 2021. During 2021 and 2022, the company entered into the following transactions:

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Instructions

a. Calculate revenue, operating expenses, and profi t for 2021 and 2022 using cash basis accounting.

b. Calculate revenue, operating expenses, and profi t for 2021 and 2022 using accrual basis accounting.

c. Which basis of accounting (cash or accrual) gives more useful information for decision-makers? Explain.

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Related Book For  book-img-for-question

Accounting Principles Volume 1

ISBN: 978-1119502425

8th Canadian Edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

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