Professor’s Question: "Most companies will use accrual accounting. Why? It is easier to compare amounts from one period to another. The cash basis makes it more difficult to compare numbers. Why do we compare numbers in a manufacturing company? Why do we compare numbers by products? Why do we compare numbers by similar companies? Do you think Apple and Samsung keep up with numbers from each other and their other competitors? In business, one of the most important things is cash flow? What is meant by cash flow? Why would you think cash flow is so important? Give some examples.

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Accrual Accounting Most companies use accrual accounting because it is easier to compare amounts from one period to another The cash basis makes it mo... View the full answer