Patrick Bronson is the owner of a local CPA firm.His client, J.R.'s Convenience Store, is a small local business that records its transactions on a cash basis.Each year, Patrick's firm prepares financial statements for J.R.'s on a cash basis.Is this a violation of the accounting principles rule? How should the CPA treat the preparation of cash basis financial statements?

Question

Quizplus · Accepted Answer

The Answer of Patrick Bronson is the owner of a local CPA firm.His client, J.R.'s Convenience Store, is a small local business that records its transactions on a cash basis.Each year, Patrick's firm prepares financial statements for J.R.'s on a cash basis.Is this a violation of the accounting principles rule? How should the CPA treat the preparation of cash basis financial statements?

Patrick Bronson Is the Owner of a Local CPA Firm