Nancy operates a business that uses the accrual method of accounting. in december, nancy asked her brother, hank, to provide her business with consulting advice. hank billed nancy for $5,000 of consulting services in year 0 (a reasonable amount), but nancy was only able to pay $3,000 of the bill by the end of year 0. however, nancy paid the remainder of the bill in year 1. a. how much of the $5,000 consulting services will hank include in his income in year 0 if he uses the cash method of accounting? what amount can nancy deduct in year 0 for the consulting services?

Alyssa works for an engineering firm that has been hired to design and supervise the construction of a highway bridge over a major river. the bridge will be a unique design, incorporating complex designs that will likely never be duplicated. how should alyssa deal with designing and overseeing the building of the bridge?

The gomez company, a merchandising firm, has budgeted its activity for december according to the following information: • sales at $500,000, all for cash. • merchandise inventory on november 30 was $250,000. • the cash balance at december 1 was $20,000. • selling and administrative expenses are budgeted at $50,000 for december and are paid for in cash. • budgeted depreciation for december is $30,000. • the planned merchandise inventory on december 31 is $260,000. • the cost of goods sold represents 75% of the selling price. • all purchases are paid for in cash. the budgeted cash disbursements for december are:

Which of the following characteristics are emphasized in the accounting for state and local government entities? i. revenues should be matched with expenditures to measure success or failure of the government entity. ii. there is an emphasis on expendability of resources to accomplish objectives. a. i only b. ii only c. i and ii d. neither i nor ii