Discussion topic

Financial statements are prepared using which basis of Accounting and why? Explain

Financial statements are prepared using which basis of Accounting and why? Explain

by Fatematuz Zohra -
Number of replies: 1

Generally,  external financial statements are prepared on the accrual basis of accounting which means that assets and liabilities are recorded when they are committed to, and revenue and expenses are recorded when they are incurred (rather than when they are actually paid).

In reply to Fatematuz Zohra

Re: Financial statements are prepared using which basis of Accounting and why? Explain

by Shahana Kabir -
Good observation.Thanks for response.