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    1. Business
    2. Accounting
    3. Financial Accounting & Bookkeeping
    4. Accounting Standards
    5. Basic Generally Accepted Accounting Principles (GAAP)
    6. Accrual Basis vs. Cash Basis
    7. 399078

    This post addresses accrual basis accounting.

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    Publicly traded firms are required to report to the investors using an accrual not a cash-basis approach. Do you think they should? What are the advantages? The drawbacks?

    © BrainMass Inc. brainmass.com October 10, 2019, 2:54 am ad1c9bdddf
    https://brainmass.com/business/cash-vs-accrual-accounting/addresses-accrual-basis-accounting-399078

    Solution Preview

    I definitely think they should use the accrual approach. By doing so, it gives investors a more clear picture of how the company is doing presently, and most importantly, if the company is generating a profit. By matching income to expenses under the accrual method, we're showing the true ...

    Solution Summary

    The solution provides a detailed discussion examining the benefits and drawbacks of accrual basis accounting, compared to cash-basis accounting. This solution is written based on 25+ years of professional accounting experience.

    $2.19

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