Bookkeeping 1.1

a person who enters the numbers into the accounting books

• bookkeeper

• accountant

• business owner

• entrepreneur

when you record all the transactions only when cash actually changes hands

• cash-basis method

• accrual method

• accounting

• bookkeeping

when you record the transaction when the transaction is completed, even if cash has not yet changed hands

• cash-basis method

• accrual method

• accounting

• bookkeeping

You should never use the cash-basis accounting method if...

• your business carries over inventory

• your business allows customers to buy on store credit

• you have an accountant

• your business has a credit card

You should never use the cash-basis accounting method if...

• you decide to incorporate your business

• you have gross annual sales of more than $5 million

• you have an accountant

• your business has a credit card

A sole proprietor is

• a single owner

• a partnership group

• a fish salesman

• a business expert

If you change your accounting method, you must...

• file a form with the IRS

• get a new computer

• start a new piece of paper

• get an accountant

If you change your accounting method, you must file this with the IRS

• Change in Accounting Method

• Change of Method

• Change of Accounting

• Change of Accountant

If you change your accounting method, you must file this with the IRS

• Form 3115

• Form 5113

• Form 8513

• Form 3185

You must file the change of accounting method with the IRS at least ____ days before the end of the tax year.

• 30

• 60

• 90

• 180