State with reasons, whether the following statements are true or false: Accrual concept implies accounting on cash basis.
CA Foundation · Accounting · RTP · September 2024
State with reasons, whether the following statements are true or false: Accrual concept implies accounting on cash basis.
Suggested Answer and Working Notes:
False: Accrual concept implies accounting on ‘due’ or ‘accrual’ basis. Accrual basis of accounting involves recognition of revenues and costs as and when they accrue irrespective of actual receipts or payments.
Topics: Theoretical Framework
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