Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 31 - No. 17)
What is the primary purpose of the 'accrual basis of accounting'?
To match revenues with related expenses.
To track cash inflows and outflows.
To provide information to internal management.
To minimize tax liabilities.
Explanation
Accrual accounting's primary goal is to match revenues with the expenses incurred to generate those revenues in the same accounting period.
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