Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 46 - No. 9)
Which of the following is the MOST important reason to match accrued income and expenses?
To make the balance sheet more attractive.
To create a more accurate picture of the company's financial performance.
To make the tax returns simpler.
To reduce the company's liabilities.
Explanation
Accrual accounting is about recognizing revenues and expenses in the period they are earned or incurred, regardless of when cash changes hands.
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