What will be the effect on working capital & cash flows from operating activities in financial statements, If failure to accrue current year expenses?

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Muhammad Mujtaba Shafique
07-February-2016

Cash Flow Forecasting Financial Reporting Economics Capital Acquisition

Question ajoutée par Naleer Osman Gani , Senior Accountant , Landmakr Group International
Date de publication: 2015/07/10

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par kulsoom Hassan , accounts officer , Herbion Pakistan Pvt Ltd

working capital will be overstated as payable will be understated not being accrued for the year while their will no impact on cash flows as only those expenses paid out in cash are recorded in cash flows.

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What will be the effect on working capital & cash flows from operating activities in financial statements, If failure to accrue current year expenses?

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