Explain Why Accrual Accounting Is the Preferred Accounting Method,including in Your

Question

Examlex · Accepted Answer

The Answer is Accrual accounting is the preferred method because:
• It provides a more accurate picture of what has actually happened during the accounting period.
• The matching principle requires expenses and revenues that have occurred in the same accounting period to be recorded in that same period.Accrual accounting achieves this by recording credit transactions and making balance adjustments that take into account what has actually been earned (revenues)and actually used up (expenses)for the accounting period.

Explain Why Accrual Accounting Is the Preferred Accounting Method,including in Your

Definitions: