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2021-02-06T13:29:49Z

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User: Under the accrual basis of accounting, revenues are reported on the income statement when they are earned. Under the accrual basis of accounting, expenses are matched with the related revenues and/or are reported when the expense occurs, not when the cash

2018-11-27T19:13:14Z

Under the accrual basis of accounting, revenues are reported on the income statement when they are earned. Under the accrual basis of accounting, expenses are matched with the related revenues and/or are reported when the expense occurs, not when the cash

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Most businesses typically use one of two basic accounting methods in their bookkeeping systems: cash basis or accrual basis. While most businesses use the accrual basis, the most appropriate method for your company depends on your sales volume, whether or not you sell on credit and your business structure.<ref>Accounting Methods [https://www.entrepreneur.com/encyclopedia/accrual-accounting Entrepreneur]</ref>

Under the accrual basis of accounting, revenues are reported on the income statement when they are earned. Under the accrual basis of accounting, expenses are matched with the related revenues and/or are reported when the expense occurs, not when the cash is paid. The result of accrual accounting is an income statement that better measures the profitability of a company during a specific time period.<ref>What is the Accrual Basis of Accounting [http://www.accountingcoach.com/blog/acrrual-basis-accounting Accounting Coach]</ref>

The need for this method arose out of the increasing complexity of business transactions and a desire for more accurate financial information. Selling on credit and projects that provide revenue streams over a long period of time affect the company's financial condition at the point of the transaction. Therefore, it makes sense that such events should also be reflected on the financial statements during the same reporting period that these transactions occur. Therefore, Accrual accounting is considered to be the standard accounting practice for most companies, with the exception of very small operations. This method provides a more accurate picture of the company's current condition, but its relative complexity makes it more expensive to implement. This is the opposite of cash accounting, which recognizes transactions only when there is an exchange of cash.<ref>Breaking Down Accrual Accounting [http://www.investopedia.com/terms/a/accrualaccounting.asp Investopedia]</ref>

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-Most businesses typically use one of two basic accounting methods in their bookkeeping systems: cash basis or accrual basis. While most businesses use the accrual basis, the most appropriate method for your company depends on your sales volume, whether or not you sell on credit and your business structure.<ref>Accounting Methods [https://www.entrepreneur.com/encyclopedia/accrual-accounting Entrepreneur]</ref>
+Most businesses typically use one of two basic [[accounting]] methods in their bookkeeping systems: cash basis or accrual basis. While most businesses use the accrual basis, the most appropriate method for your company depends on your sales volume, whether or not you sell on credit and your [[business]] structure.<ref>Accounting Methods [https://www.entrepreneur.com/encyclopedia/accrual-accounting Entrepreneur]</ref>
 Under the accrual basis of accounting, revenues are reported on the income statement when they are earned. Under the accrual basis of accounting, expenses are matched with the related revenues and/or are reported when the expense occurs, not when the cash is paid. The result of accrual accounting is an income statement that better measures the profitability of a company during a specific time period.<ref>What is the Accrual Basis of Accounting [http://www.accountingcoach.com/blog/acrrual-basis-accounting Accounting Coach]</ref>
-The need for this method arose out of the increasing complexity of business transactions and a desire for more accurate financial information. Selling on credit and projects that provide revenue streams over a long period of time affect the company's financial condition at the point of the transaction. Therefore, it makes sense that such events should also be reflected on the financial statements during the same reporting period that these transactions occur. Therefore, Accrual accounting is considered to be the standard accounting practice for most companies, with the exception of very small operations. This method provides a more accurate picture of the company's current condition, but its relative complexity makes it more expensive to implement. This is the opposite of cash accounting, which recognizes transactions only when there is an exchange of cash.<ref>Breaking Down Accrual Accounting [http://www.investopedia.com/terms/a/accrualaccounting.asp Investopedia]</ref>
+The need for this method arose out of the increasing complexity of business transactions and a desire for more accurate financial information. Selling on credit and projects that provide revenue streams over a long period of time affect the company's financial condition at the point of the transaction. Therefore, it makes sense that such events should also be reflected on the financial statements during the same reporting period that these transactions occur. Therefore, Accrual accounting is considered to be the [[standard]] accounting practice for most companies, with the exception of very small operations. This method provides a more accurate picture of the company's current condition, but its relative complexity makes it more expensive to implement. This is the opposite of cash accounting, which recognizes transactions only when there is an exchange of cash.<ref>Breaking Down Accrual Accounting [http://www.investopedia.com/terms/a/accrualaccounting.asp Investopedia]</ref>
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Accrual Accounting - Revision history

User: The LinkTitles extension automatically added links to existing pages (https://github.com/bovender/LinkTitles).

User: Under the accrual basis of accounting, revenues are reported on the income statement when they are earned. Under the accrual basis of accounting, expenses are matched with the related revenues and/or are reported when the expense occurs, not when the cash