For the Clean and Squeaky, LLC return, what entries might be different if the company...
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For the Clean and Squeaky, LLC return, what entries might be different if the company used the cash method of accounting instead of accrual? Certain expenses on page 1 would be higher because they would include all expenses actually paid during the year, including items that were partial payments for services to be provided in the coming year. On Schedule L, there would not be amounts on line 6. other current assets, certain prepaid items, or on line 18 for taxes payable. Certain expenses page 1 would be lower due to payments not being made until due dates in the coming year, including items by the choice of the owners. by making this accounting change, which can be done at any time also increase the amounts on Schedule L, line 6 , because they would be paid in the coming year under the cash method, which would
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