What is Accrual (Mercantile Vs Cash System of Accounting)

Answer Posted / nalini saharia

in cash system of accounting expense are considered expense
only when they are received same apply to income also. this
considered to be defective as this doesn't represent true
picture pf profitabilty.
in mercantile expenses are considered as expense durind
the period to which they pertain.when the expense are
received is not significant smae apply to income also.

Is This Answer Correct ?    11 Yes 8 No



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

1. The controlling department wants to see depreciation amount on internal orders. Which customizing setting do you need to make in asset accounting?(any 3 answer) Make the internal order in active assignment object. Make the internal order an account assignment object for the depreciation run. Set the field internal order to required or optional in the screen layout. Enhance relevant transfer variant by adding the field internal order. Assign the field internal order to account determination.

2338


What are the benefits ofparticipation in a depository?

2019


what is the cost and financial accounting? what is double entry system ?

1686


What is revaluation of assets.when it occurs

1644


im preparing for the sbi clerical post please send me the solved questions.

1782






what is a Depository Participant?

2586


what is the process of excise duty?

2038


what is a depository?

2342


.,can someone tell me how to compute the subscribed capital share?

1832


How can I explain p2p process in SAP?

2743


what is the process to return sales tax file?how can i prepared s.t. file?what should be qualification for it?

1502


what is mba tell me the more benefits in mba

1610


commisiion recieved journal entry and receipt required

1016


legal accounting methods to reduce profit of a partnership firm so as to reduce the tax liability?

2650


in case dedit balance of solvent partner and in case credit balance of insolvent partner what i do for accounting on dissolution of partnershio firm give me ans. as per garrner v/s murry rule

2102