Are you pressed for time and haven’t started working on your assignment yet? Would you like to buy an assignment? Use our custom writing services for better grades. Even if your deadline is approaching fast, our writers can handle your task right when you need it. Our writers will complete your order from scratch and make sure it’s completely unique.

Order a Similar Paper Order a Different Paper

 You have recently been hired by Davis & Company, a small public accounting firm.  One of the firm’s partners, Alice Davis, has asked you to deal with a disgruntled client, Mr. Sean Pitt, owner of the city’s largest hardware store.  Mr. Pitt is applying to a local bank for a substantial loan to remodel his store.  The bank requires accrual-based financial statements, but Mr. Pitt has always kept the company’s records on a cash basis.  He doesn’t see the purpose of accrual-based statements.  His most recent outburst went something like this: “After all, I collect cash from customers, pay my bills in cash, and I am going to pay the bank loan with cash.  And, I already show my building and equipment as assets and depreciate them.  I just don’t understand the problems.”  

Required: Draft a memo to Mr. Pitt providing an explanation of why the bank requests accrual-based financial statements for loan requests such his.  Include in the memo:

  • An explanation of the difference between a cash basis and an accrual basis measure of performance than net operating cash flow.
  • Why, in most cases, that accrual basis net income provides a better measure of performance than net operating cash flow.
  • The purpose of adjusting entries as they relate to the difference between cash and accrual accounting.

Read a selection of your colleagues’ postings.

Do you need help with this or a different assignment? Even when your task is complicated and the deadline is in less than 2 days, you still have every chance to get a good grade for it. How? By completing the order form, you will get the finest custom-written assignment at an affordable price. We also deliver a number of services for free (e.g., revisions, editing, checking the text for authenticity). Use our paper writing service to receive effective help with your homework.

Order a Similar Paper Order a Different Paper