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-   -   Why do you suppose financial statements are constructed on an accrual basis rather th (https://www.askmehelpdesk.com/showthread.php?t=583660)

  • Jun 23, 2011, 01:21 PM
    amann
    Why do you suppose financial statements are constructed on an accrual basis rather th
    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?
  • Jun 23, 2011, 03:07 PM
    joypulv
    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.

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