If your company uses accrual basis accounting, what do you need to pay special attention to? A. money the company owes. B. money that is owed to the company (not the answer.) C. Cash flow D. revenue

Question

Business

Poole

4 March, 12:11

If your company uses accrual basis accounting, what do you need to pay special attention to? A. money the company owes. B. money that is owed to the company (not the answer.) C. Cash flow D. revenue

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Answers (2)

Know the Answer?

Leyla Garza · Answer 1

Leyla Garza 4 March, 14:36

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The answer is C. Cash flow.

Ty Bowman · Answer 2

Accrual basis accounting is an accounting method which recognizes the revenue as the time when the transaction occurs. This means that economic events and their performances are measured not when the payments are made. According to this definition, if you work in a company that uses accrual accounting you shoudl pay attention on the cash flow.