Accrual basis accounting is superior to cash basis accounting in that it links income measurement to selling the principal activity of the company.
The accrual basis accounting is better than the cash basis accounting given that it shows a better performance of the business.
It shows you well when the income and the expenses happened. It helps to show if the particular month of interest was a profitable month or if it was not profitable.
It gives a more accurate description of the health of a business.
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