In its first year of operations, Sheridan Company recognized $33,800 in service revenue, $7,200 of which was on account and still outstanding at year-end. The remaining $26,600 was received in cash from customers. The company incurred operating expenses of $19,300. Of these expenses, $13,670 were paid in cash; $5,630 was still owed on account at year-end. In addition, Sheridan prepaid $3,230 for insurance coverage that would not be used until the second year of operations.
Required:
1. Calculate the first year's net earnings under the cash basis of accounting, and the first year's set earnings under the accrual basis of accounting.
2. Which basis of accounting (cash or accrual) provides more useful information for decision-makers?

Shareholders of tesla recently expressed concerns that elon musk should give up some of his power on tesla's board by appointing two independent directors. which of the following is not a reason why elon musk is perceived to have significant power over tesla's board? 1. he is the founder of the firm and a successful entrepreneur, thus board members may be hesitant to challenge him.2. as the ceo and chairman of the firm he can easily determine what the board should discuss and how it should vote on strategic issues.3. all board members, except for kimbal, have been appointed to the board during elon's tenure.4. many of the firm's directors are outsider investment managers whose interests would not be aligned with those of firms' shareholders.

Why should managers invest any excess cash

Atoy store has a new game in stock, but customers aren't buying it. which of the following types of inventory increases when customers aren't buying this game? a. work-in-process b. raw materials c. finished goods d. in-transit