ACC150 Unit 2 Discussion

Unit 2 Discussion (ACC150 - Accounting Essentials)

Anne Marie, the owner of Anne’s Beauty Salon continues to ask you questions about her financial statements:

1. What does net income mean on the income statement? 
2. The income statement says that I made $15,000 net income, but I only have 949.50 cash.  I don't understand why I have so much net income and so little cash.
3. I did several haircuts during the last week of the year and sent bills to all the customers?  When is that counted?
4. In December I was paid $200 in advance for some hair coloring I will do in January next year.  My accountant tells me that’s a liability. That does not make sense.