Describe the Main Reasons Why Profits Based on an Accrual

question 71

Essay

Describe the main reasons why profits based on an accrual accounting system will differ from those based on a cash-based system?

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Definitions:

Rank And File

This term refers to the ordinary members of an organization as opposed to its leadership or officers.

Constituency's Demands

The expectations or requirements that a group of supporters, voters, or clients has from their representative or service provider.

Other Party's Demand

The specific requirements or conditions stated by an opposing party in a negotiation or conflict situation.

Accountability Pressures

The demand or expectation from stakeholders to justify actions or decisions and take responsibility for outcomes.