top button
Flag Notify
    Connect to us
      Site Registration

Site Registration

What is the accrual basis of accounting?

+1 vote
150 views
What is the accrual basis of accounting?
posted Jul 3, 2017 by Abu Anam

Share this question
Facebook Share Button Twitter Share Button LinkedIn Share Button

1 Answer

0 votes

The accrual basis of accounting, revenues are reported on the income statement when they are earned. (Under the cash basis of accounting, revenues are reported on the income statement when the cash is received.) Under the accrual basis of accounting, expenses are matched with the related revenues and/or are reported when the expense occurs, not when the cash is paid. The result of accrual accounting is an income statement that better measures the profitability of a company during a specific time period.

answer Jul 4, 2017 by Sunita
...