Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. you have formed a new sole proprietorship and your

You have formed a new sole proprietorship and your primarybusiness is buying and selling...

60.1K

Verified Solution

Question

Accounting

You have formed a new sole proprietorship and your primarybusiness is buying and selling fine art. Your business is notpublicly traded so you can choose to use the cash basis method orthe accrual method for your business. Which would you use andwhy?

Answer & Explanation Solved by verified expert
3.6 Ratings (525 Votes)
I would have chosen the accrual method of accounting considering the nature of the business we work in Purchase and sale of fine art involve dealing in huge amount as such goods of high value Also wherever the high    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

In: AccountingYou have formed a new sole proprietorship and your primarybusiness is buying and selling fine...You have formed a new sole proprietorship and your primarybusiness is buying and selling fine art. Your business is notpublicly traded so you can choose to use the cash basis method orthe accrual method for your business. Which would you use andwhy?

Other questions asked by students

Q

Let a and b be rational numbers. As always, prove your answers. (a) For which choices...

Advance Math
Q

Full research about the biological human signals (ECG) time domain and frequency domain analysis (showing all...

Biology
Q

Consider an investment that costs $100,000 and has a cash inflow of $25,000 every year for...

Finance
Q

4 NH3(g) + 5 O2(g) → 4 NO(g) + 6 H2O ∆Hrxn = -906 kJ...

Chemistry
Q

How did the war impact freed African Americans

Biology
Q

D Question 10 A reader can get lost or lose interest in material that is...

Basic Math
Q

On the axes below, draw the graph of the function f(x) == -4x + 6.

Basic Math
Q

3 1 Terminology 66 1200 1000 800 600 400 200 D 1045 40 60 Total...

Statistics
Q

lve the following system of linear equations 28 Ex1 4x2 4x3 x1 6x2 5x3 37...

Algebra
Q

The Packard Company fails to record depreciation at year-end. Indicate the error on the Current...

Accounting
Q

The Delmar Beverage Co. produces a premium root beer that is sold throughout its chain...

Accounting
Q

wHICH 2 quick books subscription levels would support a client who needs to track inventory...

Accounting