Question: Accounting students understand that the accrual method of accounting is
Accounting students understand that the accrual method of accounting is superior to the cash method for measuring the income and expenses from an ongoing business for financial reporting purposes. Thus, CPAs advise their clients to use the accrual method of accounting. Yet, CPA firms generally use the cash method to prepare their own tax returns. Are the CPAs being hypocritical? Explain.
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