Question
***ANSWER THE QUESTIONSVIA THE ATTACHED EXCEL DOCUMENT*** Anne Marie, the owner of Annes Beauty Salon, comes to see you again.She tells you that she just
***ANSWER THE QUESTIONSVIA THE ATTACHED EXCEL DOCUMENT***
Anne Marie, the owner of Annes Beauty Salon, comes to see you again.She tells you that she just got her year-end set of financial statements from her accountant and is more confused.Here are her questions.
1.I have very little cash and yet he says that I had a good year with $15,000 net income.He said it was because we use accrual accounting (whatever that means).I know I paid 6 months rent ($1,400 a month) in advance at the end of the year.I also paid my insurance for the next year.Insurance cost $6,000.I have several customers who had a lot of services done on credit and havent paid yet.I think that totals $2,000 owed to me.Can you explain?
2.I was paid $200 in advance for some hair coloring I will do in January.He tells me thats a liability.That doesnt make any sense to me?Please explain.
3.In December I did several hair several haircuts during the last week of the year and sent bills to all the customers?When is that counted?
How would you answer these questions?
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