Advantages of Accrual Basis Accounting Analytical Essay by Top Papers

Advantages of Accrual Basis Accounting
An examination of accounting on an accrual basis.
# 132518 | 750 words | 1 source | APA | 2007 | US
Published on Dec 01, 2007 in Accounting (Financial) , Accounting (Theory)


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Description:

This paper focuses on the use of accounting on an accrual basis. The paper explains that the National Research Council (NRC) uses the accrual basis for accounting since under accrual accounting, the company record revenues when they are earned, and records expenses in the accounting period which they are incurred. Also, income is reported in the time period it was earned, irrespective of the when the revenue was received by the NRC.

From the Paper:

"The National Research Council (NRC) uses the accrual basis for accounting since under accrual accounting, the company record revenues when they are earned, and records expenses in the accounting period which they are incurred. Also, income is reported in the time period it was earned, irrespective of the when the revenue was received by the NRC. The major benefits from this practice stem from the fact that:- * The accrual basis complies with GAAP procedures. * Accrual basis provides a more adequate picture of profitability, which may help with long-term planning and forecasting."

Cite this Analytical Essay:

APA Format

Advantages of Accrual Basis Accounting (2007, December 01) Retrieved January 27, 2021, from https://www.academon.com/analytical-essay/advantages-of-accrual-basis-accounting-132518/

MLA Format

"Advantages of Accrual Basis Accounting" 01 December 2007. Web. 27 January. 2021. <https://www.academon.com/analytical-essay/advantages-of-accrual-basis-accounting-132518/>

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