Both the cash and accrual accounting methods of bookkeeping are accepted by tax law and accounting standards as appropriate ways to record and report on the financial events of a business. The advantages and disadvantages of each method are only appropriate to small enterprises who are given this choice. Large corporations and for-profit companies are required to report on their financial position and performance using only the accrual accounting method.
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Peter John Baskerville
onto Basic Accounting Concepts October 29, 2011 5:41 AM
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