a) Taylors Art Supplies reports $20,000 sales revenue for the current year, $10,000 of which was from credit sales and still outstanding at the end of the year. During the year, operating expenses of $11,000 were incurred. Of these expenses, $6,000 were paid in cash and the remainder will be paid next year. In addition, the business paid $10,000 for rent expense of which $5,000 related to next year.

Required:

Calculate the profit or loss earnt by the business for the current year using the accrual basis of accounting (4 marks)

b) The purpose of accounting is to provide various stakeholders with information that is useful for decision making.

List two users of accounting information and explain the type of accounting information each would require to make an informed decision (2 marks)