Page 4 of 5 Assignment 02 Questions PART-E You are visiting with a friend, Jim Borke, who wants to start a new business. During discussions on forming the business, Jim makes this statement "Our business will have accounts receivable and accounts payable. It will also acquire a substantial amount of computers and equipment. Will it be acceptable to use the 'cash basis as opposed to the accrual basis of accounting?" Prepare a response in a memorandum to Jim END