Flashcards
Untitled
Cards in this deck (2)
- 1Accrural Concept Business transactions are recorded when they occur and not when the related payments are received or made. This concept is called accrual basis of accounting and it is fundamental to the usefulness of financial accounting information.An airline sells its tickets days or even weeks before the flight is made, but it does not record the payments as revenue because the flight, the event on which the revenue is based has not occurred yet.
- 2Accrural Concept Business transactions are recorded when they occur and not when the related payments are received or made. This concept is called accrual basis of accounting and it is fundamental to the usefulness of financial accounting information.An airline sells its tickets days or even weeks before the flight is made, but it does not record the payments as revenue because the flight, the event on which the revenue is based has not occurred yet.
Information
- Description
- Accounting For Business (Accounting Rules) Flashcards on Untitled, created by sean.brittle on 04/09/2013.
- Created by
- sean.brittle
- Views
- 19
- Tags
- Rating
More on Accrual and Cash Basis Accounting