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Can you help me out with these theory questions? Thanks! 1. When is a revenue recognised when a business is employing the Cash Accounting method?

Can you help me out with these theory questions? Thanks! image text in transcribed
1. When is a revenue recognised when a business is employing the Cash Accounting method? A business has received commission of $4,400 on 19 June 2018 for work to be done in the 2019 financial year. From the receipt of the $4,400 to the making of the Balance Day Adjustment, describe the steps that are followed to ensure these amounts are correctly recorded in the books of the business. (Assume GST is reported to the ATO using on a Cash Accounting basis & that receipts are processed directly to the related revenue account with any necessary adjustments being made on balance day). 2. Describe which accounts are posted to the Capital account as part of the year end process and the impact of these entries on the final Owner's Equity figure in the Balance Sheet 3. 4. Accrual accounting is considered the more conceptually sound method of accounting Explain how it produces a more accurate income figure than Cash Accounting? 5. Describe the interrelationship between the matching principle and accrual accounting Describe the impact of a $5,500 accrued wage expense on the financial statements of a business. 6. 7. List the accounts which need must be closed as part of the end of year accounting activities A business has made a loss of $15,000, the owners withdrew $55,000 after contributing $10,000 during the year. The net worth (Owner's equity of the business) at the beginning of the financial year was $85,000. Show the formula for calculating the closing balance. 8. 9. What is the test for income recognition in a retail business when accrual accounting is used? 10. When is income recognised when a business uses the Cash Accounting method

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