Asked by sarthak mahajan on May 29, 2024
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Accrual accounting decouples measured earnings from operating cash inflows and outflows.
Accrual Accounting
A financial reporting strategy that recognizes income and expenditures at the time they are earned or incurred, without regard to the actual movement of cash.
Operating Cash
refers to the cash that a business generates from its normal operating activities, crucial for maintaining day-to-day operations.
- Understand the implications of accrual accounting on the measurement of earnings and its potential discrepancies with cash flows.
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Learning Objectives
- Understand the implications of accrual accounting on the measurement of earnings and its potential discrepancies with cash flows.
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