the im.portance of accrual method

the im.portance of accrual method - Importance of the...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Importance of the accrual method 1 Stephenie Hyatt Importance of the Accrual Method University of Phoenix September 2, 2010
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Importance of the accrual method 2 With the accrual method of accounting, records money coming in when it is earned and also records money going out when money is owed to someone. This does not immediately take into account when money is earned or when money is owed. A separate entry is made for when the sale is complete or when services have been provided. With a cash account, the records are annotated when the money is received and when the service has been rendered out. Accrual accounting is important because it records two different sets of numbers. One set is when the money goes out and when a service or product is due to someone and the other when the money is received or when the service has been provided. Accrual accounting is important because this method gives a much clearer monetary picture of how your business is doing than the cash method does. With the accrual method of accounting, revenue
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

the im.portance of accrual method - Importance of the...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online