Question

Plz write in your own text and don't copy answers that was answered before since my teacher has (Plagiarism checker) thank you at least 3-4 paragraphs

1. Bills can be paid when they are received or when they are due. Which features in QuickBooks are used to record receipts and payments? How are cash purchases recorded? Why is the QuickZoom feature important?

2.Describe the matching principles in accounting. How is prepaid expense accounted for? Give an example. What is the difference between cash basis accounting and accrual basis accounting?

at least 3-4 paragraphs at least 3-4 paragraphs

Answer 1

1.  Bills can be paid when they are received or when they are due: As per the requirement it is completely cleared that Company is following accrual basis of accounting. Payment to creditors first depend upon the PO terms agreed between them and payment term is not depend upon the issuance of invocie , If this is the fact same is required to be paid as and when due or before that as per the payment company fiancial stability. Secondly, If it depends upon invoice sam ecan be paid as per the terms with in the days of receipt / issue of invoice. from above company has to understand the term before making payment to creditors and its future requirement of working capital accordingly.

Which features in QuickBooks are used to record receipts and payments?: Recording recipts and payments is deals with Customers and Mapping Against the invoice. Choose the customer from Home page then tab on Customer Menu , select the Receipt Amount, Fill the Amount Received , Double check the same. Same is in the case of Payment also, As same is Choose the Payment Method and select the Invoice to be paid and paid accordingly and correctly fill the amount to be paid.

How are cash purchases recorded? Cash Purchases are recorded where purcashes are made agaisnt Cash payment. ( Payment is made by Bank) on the same date of purchases.

Purchases A/c Dr.

To Cash / Bank A/c

Why is the QuickZoom feature important?: QuickZoom feature is provide the real time information as like other Accouning software. Trial Balance, Accounting statment of any ledger account. SPecial features as per Accounting Standards Applicable. etc.

2. Describe the matching principles in accounting. : Matching Principle siply state the concept of matching of all expenses pertaining to Revenue during the period. It will help to provide true and fair view of the financial reporting.

How is prepaid expense accounted for? Give an example.: Prepaid Expenses is the expenses which are paid in Advance before the expenses accrued. Like Prepaid rent. Rent for the month of December 2020 is paid in the month of January 2020.

Rent Expenses A/c Dr.

To Prepaid Rent A/c

( At the time of charging to p and L a/c )

Prepaid Rent A/c Dr.

To Cash A/c

( At the time of Making Payment)

What is the difference between cash basis accounting and accrual basis accounting?: Cash Basis of Accounting deal with recording only on the basis of Cash , If cash is paid or receipt same will be recorded in the period in which it is paid or receipt. It does not obey the double accounting principle.

Where as in Accrual basis of accounting deals with the Accrual principle and recording is made on the basis of the matching concept an dperiodical recording means if the expenses peraining to that period need to be recorded theirin whether payment for the same is made or not or whether receipt is made or not. it gives true and fair view of the fianncial position.