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متابعة

Which accounting method is best? Cash based accounting or accrual based accounting? Does it depend on the nature of business?

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تم إضافة السؤال من قبل Hasan Shahzad , Analyst , SNL Financial
تاريخ النشر: 2014/05/11
mostafa mostafa
من قبل mostafa mostafa , Chief Accountant , International Language Institute

The best base is the accrual. This is because it applies the matching role of accounting.

 

مستخدم محذوف‎
من قبل مستخدم محذوف‎

Accural method

Khurrum Iqbal
من قبل Khurrum Iqbal , Accountant , Akun Logistic Services

Accrual method is universally accepted accounting method, because as Mr. Mostafa said based on matching principle i.e. income accrued but not received or expenses accrued but not paid.

 

But it can be viewed differently and more accurately once converted into cash basis.