1) A receipt is proof of payment that is given to anyone who purchases merchandise. On the receipt, we can find the price of the goods, the date, the description of the product, and the taxes payable. This document can be used to manage returns or prove that a transaction has been made, it has no tax effects, and it's not accounted for.

On the other hand, the invoice is a document that the seller delivers to the buyer, detailing the sold products or services. More specific data about the buyer and the transaction appear. Unlike receipts, the invoice is an official document that is posted and has a tax purpose. It is usually issued before making the payment to justify that commercial operation. That's why most industries use these types of documents because it helps them better keep track of the buying and selling transactions that are made daily. What is your opinion?

2) A business knows when to create an invoice and when to create a sales receipt because a business makes an invoice when they sell products using a credit card and make sales receipts when they sell goods for money or get money on credit sales to the client.

An invoice is demanded installments while sales receipts act as proof for installments. On the off chance that invoices are given, at the point, the income is relied upon to be acknowledged in the future. Consequently, they are recorded as account holders. When receipts are issued, it speaks to that money is received, and thus either sale is recorded as cash sales or indebted individuals' balance is decreased.

In general, Wholesale industries that sell a plethora of goods to resale or further processing are likely to issue invoices, and retailers who sell goods to final customers are likely to issue receipts. What is your opinion?

3)QuickBooks Desktop records revenue when an invoice is generated even though cash has not been received. Is this an acceptable practice? Why or why not?

• Yes, this is an acceptable practice and is allowed by the GAAP. Most companies use two accounting methods to practice, which are accrual accounting and cash basis accounting. In this case, it would be an accrual accounting method. An accrual accounting method is when companies recognize and record journal entries when earned even though cash has not been received. For example, a customer buys products on account (credit), revenue is recognized, the customer has access to the product whether the customer paid on account or cash at that time. What is your opinion on this answer?

4)Accrual accounting is an accounting method where revenue and expenses are recorded when the transaction occurs rather than when payment is received or made. This method of accounting follows the matching principle. The matching principle is an accounting principle that requires expenses to be recorded in the same period in which revenue is earned. This is part of the generally accepted account principles(GAAP). What is your opinion?