Explain how the accrual accounting concept provides guidance to accountants in preparing the income statement and calculating profits.
Part 1. The business has the following opening balances: Additional Information: Cash At Bank $16,611 Bank loan interest rates (% per year) 8 Account Receivable $16,248 Motor vehicle useful life (years) 3 Motor Vehicle $30,316 Motor vehicle scrap value ($) 3,380 Account Payable $8,787 Insurance paid for (months) 2 Bank Loan (due 2022) $24,973 Rent […]