Question

which basis accounting is best for business entities and why...??
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Answer 1

Answer ⤵️

Investors and external parties need more complex reporting that shows how the business is performing. Since the IRS requires most nonprofit organizations to file a 990 information return, accrual basis accounting is preferable because it allows for GAAP compliance.

Answer 2

Investors and external parties need more complex reporting that shows how the business is performing. Since the IRS requires most nonprofit organizations to file a 990 information return, accrual basis accounting is preferable because it allows for GAAP compliance.