Sweet Cheeks Ldt.

Dear Ana: After careful consideration of Sweet Cheeks check and the information that has been provided, there are certain suggestions for accounting policies that I can provide. It is important to remember that the most important drug user is Mr. Naïf, the banker. Due to the fact that the bank will be looking over your financial statements, GAAP will be applied. As well, the main objective being considered will be income maximization. Even though you, as the owner, want lower income to avoid taxes payable, it is most important to secure the impart from the bank. I tell apart that you and your management team want to lower income taxes but without the loan from the bank, your business will not be able to start. The initial issue deals with gross recognition and the cruise package system. The offset printing two installments would be considered unearned receipts and would need to be recorded as such. Only after the last stipend has been received and the trip is done, revenue can be recorded. This is overdue to the fact that four conditions have to be satisfied for revenue to be recorded: performance must occur, amount of revenue can be passably measured, expenses can be reasonably measured and collection of payment is reasonably assured.

Performance in this case would be the cruise dish up and, until the trip is done, the service has not been rendered. This system also complies well with GAAP and the conservatism principle. Another option could be to record the revenue end-to-end the duration of the trip (a one month period). This method, however, would be much time consuming and costly because of the increased number of transactions. In the long run, both methods would result in the same income, as the only difference is when the amounts are recorded. The bank will be pleased to see that you are following GAAP and this method for recording income will result in a sportsmanlike representation of the company. When recording revenue, it is important to remember the expenses that were... If you want to swallow a full essay, order it on our website: Orderessay

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