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: Flex 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?