You are visiting with a friend, Jim Bede, who wants to start a new business. During discussions on forming the business, Jim makes this statement:
Our business will have accounts receivable and accounts payable. It will also acquire a substantial amount of computers and equipment. Will it be acceptable to use the cash basis of accounting?
Prepare a response for Jim.

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The Answer of You are visiting with a friend, Jim Bede, who wants to start a new business. During discussions on forming the business, Jim makes this statement:
Our business will have accounts receivable and accounts payable. It will also acquire a substantial amount of computers and equipment. Will it be acceptable to use the cash basis of accounting?
Prepare a response for Jim.

You Are Visiting with a Friend, Jim Bede, Who Wants