Читать книгу Cost Accounting For Dummies - Kenneth W. Boyd - Страница 27

You decide to use the accrual method of accounting. This method matches your revenue with the expenses you incur to generate the revenue. Using this method, rather than the cash basis of accounting, gives you a more realistic picture of your profitability.

The cash basis posts revenue and expenses based on cash inflows and outflows, which distorts the true profitability of your business. Using accrual accounting helps you make more informed decisions.