Scenario: BizCon, a consulting firm, has aloof completed its aboriginal year of operations. The company's sales advance was explosive. To animate audience to appoint its services, BizCon offered 180-day costs - acceptation its bigger barter do not pay for about 6 months. Because BizCon is a new company, its accessories suppliers assert on actuality paid banknote on delivery. Also, it had to pay up advanced for 2 years of insurance. At the end of the year, BizCon owed advisers for one abounding ages of salaries, but due to a banknote shortfall, it promised to pay them the aboriginal anniversary of abutting year.
As the chief accountant, the Chief Financial Officer has asked you to adapt a announcement to be beatific to administration advice them of the delayed allowance payments.
Prepare the announcement in a best 700 words including the afterward advice to bigger outline the situation:
Explain how banknote and accretion accounting differs for anniversary of the contest listed in the aloft book and call the able accretion accounting.
Assess how at the end of the year, BizCon appear a favorable net income, yet the company's administration is anxious because the aggregation is actual abbreviate of cash. Explain to administration how BizCon could accept absolute net assets and yet run out of cash.
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