Podcast
Play an AI-generated podcast conversation about this lesson
Questions and Answers
પડતર હિસાબોના ગેરફાયદાઓની ચર્ચા કરો
પડતર હિસાબોના ગેરફાયદાઓની ચર્ચા કરો
Short answer
Flashcards
Disadvantages of accrual accounting
Disadvantages of accrual accounting
Accrual accounting, while providing a more accurate picture of a company's financial health by recognizing revenue and expenses when they are earned or incurred, rather than when cash changes hands, can be disadvantageous because it may not reflect the company’s short-term cash flow. This can create challenges in day-to-day operations if a company does not have sufficient cash to cover its immediate obligations.
