cash basis

Accrual accounting is much more complex than cash basis accounting.

Why do you think accrual basis accounting is Analysis preferable to cash basis accounting in evaluating a business's operating results?

For many, the choice is simple: the simplicity of cash basis accounting appeals to most small charities, while large organizations generally find the more sophisticated accrual basis better reflects their financial health.

A study of the small print of Chancellor Mr Gordon Brown's Budget has removed the financial fears of many UK professional people, such as lawyers, who had faced the sudden ending of more than 100 years' of cash basis accounting.

As part of this ruling, the Service allowed the law firm to continue using cash basis accounting.

While cash basis accounting provides very limited information to financial statement users, many companies believe that adoption of accrual accounting would cause adverse economic consequences for their firms.

Also, conventional wisdom tells us that accrual basis accounting is vastly superior to cash basis accounting.

Fitch believes past county actions such as the historical failure to maintain sufficient levels of reserves, unrealistic budgeting and the conversion from GAAP to cash basis accounting reflect weak management practices.