Why do you suppose financial statements are constructed on an accrual basis rather than a cash basis when cash accounting is so much easier to understand?
![]() |
Why do you suppose financial statements are constructed on an accrual basis rather than a cash basis when cash accounting is so much easier to understand?
Countless small businesses DO run just fine on a cash basis, but large companies need to know what expenses and income are not paid/received yet. Accrual gives a more accurate picture.
All times are GMT -7. The time now is 01:38 PM. |