Your like to start a trading company in your country and hire you as accounting profession to make some important decisions such as using cash or accrual basis accounting, how often will financial statements be preparedwhen will the business record
Thank you for the opportunity to help you with your question!
Under the cash basis accounting revenues are often
recorded on the financial statements in the period in which the cash is
received from customers whereas expenses are recorded when the cash is paid
out. On the other hand under accrual basis revenues from customers are recorded
when they are earned while expenses are
recorded in the financial statements in the period in which they occurred or
when they expired which is often different from the period in which payment
Please let me know if you need any clarification. I'm always happy to answer your questions.
Dec 15th, 2015
Studypool's Notebank makes it easy to buy and sell old notes, study guides, reviews, etc.