Description
Explain what accrual method of accounting means? Please discuss comprehensively and provide samples when possible. This needs to be at least 300 words.
Explanation & Answer
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Accrual accounting method is used to rank the performance of a company by taking into
account economic activities of the chosen company of study without considering the time cash
transaction happened. Economic activities are recorded by matching income to expenses when
the transaction is made rather than when payments are cleared. This method is important as it
gives accurate information on the financial condition of the company.
Most companies take the principle of accrual accounting as...