Describe the benefit(s) of using the accrual process as compared to the cash basis
Cash basis accounting is not conducive to a comprehensive view of a company's financial health. The accrual process is designed to recognize revenue when actually earned and expenses when actually incurred regardless of when cash changes hands. This is in keeping with the matching principle and provides a better picture of a company's true financial health.
You might also like to view...
A management information system should emphasize satisfying
a. external demands for information. b. external and internal demands for information. c. internal demands for information. d. the Accounting Department's demands for information.
Building quality into services can be
A. improved by giving employees the authority to correct a problem on their own. B. accomplished easily by spending more. C. accomplished easily with surprise quality inspections. D. considered unnecessary unless the service is guaranteed. E. accomplished without top-level support because it is such a simple idea.
Order processing is defined as
A. the receipt and transmission of sales order information. B. the second stage in a physical distribution system. C. the four main tasks. D. the same as order handling. E. electronic processing of information.
Deliberately tailgating a car very closely could justify a lawsuit for assault even if no accident occurs
Indicate whether the statement is true or false