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soman2006

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College - Junior

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Topic: Business

Why is the accrual basis of accounting generally preferred over cash basis, and give an example of why accrual is preferred over cash

Posted by soman2006 on July 13, 2011 at 8:16 AM via web and tagged with accounting, accrual basis, business, cash basis

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    pacorz

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    High School - 12th Grade

    Educator, Expert, Instructor, Einstein

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    Accrual accounting is generally preferred because it gives a fairer picture of the business' real obligations, including those transactions that have been committed to but not yet completed. In...

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    Posted by pacorz on July 13, 2011 at 11:32 AM (Answer #1)

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