Traditional Culture Encyclopedia - Traditional virtues - The confirmation, measurement and report of enterprise accounting should be based on ()
The confirmation, measurement and report of enterprise accounting should be based on ()
Accrual basis refers to the expenses incurred in the current period that should be compensated by the current income, regardless of the actual paid or unpaid monetary funds in the current period, they should be treated as current expenses; All income attributable to the current period, regardless of whether monetary funds have actually been received, should be treated as current income. The implementation of this system is conducive to correctly reflecting the cost level and profit and loss of each period.
Accrual basis is reasonable in reflecting the business performance of enterprises, which almost completely replaces cash basis; However, it has its limitations in reflecting the financial situation of enterprises: enterprises with good management and high efficiency on the income statement may fall into financial difficulties without corresponding liquidation funds on the balance sheet. This is because the accrual basis reflects accrued income and expenses on the income statement, while on the balance sheet, part of it is reflected in cash receipts and payments, and part is reflected in creditor's rights and debts. In order to prompt this situation, we should prepare a cash flow statement or a statement of changes in financial position on the basis of cash basis.
Extended data:
Article 6 The recognition, measurement and reporting of enterprise accounting shall be based on going concern.
Article 7 An enterprise shall divide accounting periods, settle accounts by stages and prepare financial and accounting reports. The accounting period is divided into annual and interim periods. An interim period refers to a reporting period shorter than a complete fiscal year.
Article 8 Enterprise accounting shall be measured in currency.
Article 9 An enterprise shall carry out accounting recognition, measurement and reporting on the basis of accrual basis.
Baidu encyclopedia-accrual basis
- Previous article:Characteristics of clay sculpture of Hua Dan and Daoma people in Hebei Province.
- Next article:Asian Games Sports Sketches
- Related articles
- What kind of etiquette education is suitable for children to learn?
- Shunfeng and Shunfeng are both very fast.
- Rationalization proposals for the development of sales companies (2)
- How to write music in English?
- Please tell me what majors there are in the direction of Chinese medicine postgraduate entrance examination, what universities there are in each direction, and what reference books are needed. They sh
- What's the fastest way to clean the oil in the kitchen?
- What are the advantages of TRIZ compared with traditional innovative methods?
- How to implement kindergarten aesthetic education
- Customs and Folklore of Dongying
- How did my world Pok¨¦ mon Kung Fu Skunks evolve?