A type of accounting whereby all current information is included in the financial reports. It’s counterpart is cash accounting whereby only actual cash income and cash expenses are included in the accounting reports. Accrual accounting is more acceptable because it portrays a more accurate picture of the business financial situation.
No other business term is so misunderstood, misstated, misleading or deceiving as the words ‘net profit’. Accounting defines net profit as the amount earned after all associated costs and expenses are subtracted from the […]