Category Archives: Bookkeeping

What is accrual basis accounting? definition and meaning

What is accrual basis accounting? definition and meaning It’s easy to determine when a transaction has occurred (the money is in the bank or out of the bank) and there is no need to track receivables or payables. The use of accrual accounting is typically useful in businesses where there are a lot of credit transactions or the goods and services are sold on credit, which simply means that there was no exchange of cash. These financial statements have been prepared on the going concern basis, conforming to the historical cost convention using the accrual method of accounting. Environmental financial … seguir leyendo

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