You are the bookkeeper for \"Refers are us.\" Your company repairs and restores

Question

You are the bookkeeper for "Refers are us." Your company repairs and restores old refrigerators. Your clients are typically older individuals that have an interest in keeping their same refrigerator instead of investing in a new one. On your first day on the job you notice several repair jobs that should be included in the month of March books; however, the boss informs you that he would like those expenses to appear on the books for April because he want his income to impress his board of directors. What should you do as a bookkeeper? What is the matching principle? How is accrual accounting versus cash accounting relevant in this scenario? Is your boss being ethical? Explain!

Explanation / Answer

A) as a book keeper maintaining books of accounts properly for each transactions for analysis effective decision by the top management and providing reliable information by the preparation of income statement .

B) Matching concept is a principle to compare all expenses with revenues/incomes for a period finally which item has been increased is the effective result.

C)In the case of Accrual concept there is recurring nature of expenses and incomes so all expenses are in payable and all incomes are receivable.

In the case of cash basis it is non-recurring nature ,each transaction of expense are in payment base and incomes will be in receipt base .

D)here,my boss is unethical because he wants to impress with wrong and unethical statements to MD'S.

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