Question

Write two advantages of accrual basis of accounting ?​

Answer 1

Advantages of Accrual Basis of Accounting are :

• (i) It gives a true and fair view of profit or loss and the financial position .
• (ii) It shows complete picture of financial transactions as it accounts prepaid and outstanding expenses, earned and unearned incomes, assets and liabilities.

Answer 2

Answer:

Advantages of Accrual Basis of Accounting are : (i) It gives a true and fair view of profit or loss and the financial position . (ii) It shows complete picture of financial transactions as it accounts prepaid and outstanding expenses, earned and unearned incomes, assets and liabilities.