Anne Marie the owner of Annes Beauty Salon comes to see yo

Anne Marie the owner of Annes Beauty Salon comes to see you again. She tells you that she just got her year-end set of financial statements from her accountant and is more confused. Here are her questions. 1. I have very little cash and yet he says that I had a good year with $15000 net income. He said it was because we use accrual accounting (whatever that means). I know I paid 6 months rent ($1400 a month) in advance at the end of the year. I also paid my insurance for the next year. Insurance cost $6000. I have several customers who had a lot of services done on credit and havent paid yet. I think that totals $2000 owed to me. Can you explain? 2. I was paid $200 in advance for some hair coloring I will do in January. He tells me thats a liability. That doesnt make any sense to me? Please explain. 3. In December I did several hair several haircuts during the last week of the year and sent bills to all the customers? When is that counted? How would you answer these questions? P.S. Please answer these questions as if you are a student learning out of an accounting 101 textbook. Thanks

Expert Help With This Assignment — On Your Terms