essay 1 clearly distinguish between the cash basis of accounting measurement and the 4352222

 

ESSAY

1.Clearly distinguish between the cash basis of accounting measurement and the accrual basis of accounting measurement.

2.Ernesto obtained a contract to wash all the windows at Lynfield College at a price of $1,000 per month. During April, Ernesto washed all the windows but had collected only $800 by the end of the month. Also during April, Ernesto incurred $300 of expenses but had only paid $200 of these by month end.

If Ernesto uses accrual-basis accounting, what is net income for April? Carefully specify how you computed that amount and why.

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