Regarding GAAP and accrual vs. cash basis accounting. Which method is the most reliable financial results? Why?

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Which method will provides the most reliable financial results?

Accrual basis is required for publicly traded corporations. Should accrual basis be the only acceptable method? Can you think of a type of company that could achieve reliable financial statements using cash basis?

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Auditing and Assurance services an integrated approach

ISBN: 978-0133125689

15th edition

Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley

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Posted Date: Apr 28, 2024 04:41 PM

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Regarding GAAP and accrual vs. cash basis accounting. Which method is the most reliable financial results? Why?

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Expert Answer:

Accrual basis accounting is generally considered to provide more reliable financial results compared to cash basis accounting Heres why 1 Matching Pri... View the full answer

Auditing and Assurance services an integrated approach

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