A Disadvantage to Using the Accrual Method of Accounting,as Compared

question 79

True/False

A disadvantage to using the accrual method of accounting,as compared to the cash method,is that under the accrual method the income may be recognized before it is actually collected.

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Definitions:

Effective Compensation System

A pay structure designed to attract, retain, and motivate employees while supporting the strategic goals of an organization.

Company Success

The achievement of a business in meeting its goals and objectives, which can include profitability, growth, and market share.

Organizations

Organizations are structured groups of people who work together to achieve common goals or fulfill a specific function.

Major Components

Essential elements or parts that constitute the foundation or structure of a system, process, or object.