Imagine, for a moment, trying to read a financial statement that had listed assets such as: cash $5,000; 14 boxes of oranges; 25 boxes of apples; 1000 board feet of lumber; 3 acres of land; and, 8 machines. A first question that might pop into your mind is: “How in the world do I add [...]
Category Archives: Accounting Principles
Accrual vs. Cash
19-May-05For the non-accountant, accrual accounting can seem as mysterious as Egyptian hieroglyphics. When working with basic small business financial statements, the accrual concept is easy to understand. However, in more complex business environments accrual accounting can become as exacting and tedious in its application as deciphering hieroglyphics. Fortunately, we are going to be discussing the [...]
