Question

Who uses accrual basis accounting?

Answer 1

The accrual basis of accounting is used by most organizations except for small businesses and individuals that prefer the cash basis of accounting due to the constraints of hiring resources and the complications associated with accrual accounting.

Also read:

• Difference Between Cash Basis and Accrual Basis of Accounting
• Accrual Basis of Accounting
• GAAP Generally Accepted Accounting Principles
• Difference Between GAAP and IFRS

Learn about more questions and answers on business studies and various other commerce topics from our website.