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Unformatted text preview: Accrual basis: Pro - more accurate and meaningful information as re: financial status and performance Con - more work is required (adjusting entries and such) Your check book is a Cash basis financial report. No business would know how it's doing if it relied solely on its check book. That's why all companies use Accrual accounting, and it is required under GAAP. The only thing positive about cash basis of accounting is its simplicity. A trial balance is simply a listing of all account balances at month end, before monthly accruals and other adjustments are made. After posting such adjustments, a new listing is called an Adjusted TB....
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- Spring '10
- Business, Accrual Basis, Cash Basis, Generally Accepted Accounting Principles