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What do you mean by accural?

Updated: 9/20/2023
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Q: What do you mean by accural?
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Why do most companies adhere to GAAP for their basic internal financial statements?

Accural accounting provides a uniform method to measure an organization's financial performance.


What is accural concept?

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Your company is Starting a new vacation policy from year to year to accural as of 010108 Does the employer owed you vacation time earned before policy change?

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If accounts payable have increased during a period will the expenses on an accural basis be less than expenses on a cash basis?

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Is the accural method of accounting accepted by GAAP?

I have question to Current ration, in order to my exam there is no given format. For currest ratio : current assets /and current libility which is given which can be relationship to these words; Current ration: current assets:inventory+ account receivable+ cash equivanlents+ cash Current liability: accruals +account payable+ notes payable. Pls give me any other words using to get the answer . Thank you.


What are accrual concept and prudence concept?

According to accural concept, expenses incurred and revenue earned during the accounting period should be recorded in the same period of accounts regardless of the actual receipt of payment of cash. According to prudence concept revenue should be recognized only when it has been realized.Revenue is recognized in the period in which it is earned irrespective of the fact whether it is received or not during that period. for example: when a product delivered to a customer the company records a revenue even though the customer will pay after 30 days.


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