Income Measurement And Accural Accounting

Accurate financial statements can be produced only if the results of business events and activities are properly recorded. Accounting records are generally based on two approaches, namely cash basis and accrual basis. In a company at the time of recording finance must use the accounting basis. Because using this accounting basis has a purpose, namely to find out when the effect of a transaction or event must be recognized. The accounting base is an important step in measuring and presenting each transaction in the financial statements, especially related to the recognition of income and expenses for each economic event. The application of the accounting base must be carried out consistently.

REFERENCES

[1] Weygandt, Jerry J., Kieso, Donald E., and Paul D, Kimmel. 2008. Accounting Principle. John Wiley & Sons (Asia) Pte Ltd.
[2] Waybright, Jeffrey and Kemp, Robert. 2010. Financial Accounting. New Jersey: Pearson.
[3] Naingolan, Pahala. 2006. Cara Mudah Memahami Akuntansi. Seri Manajemen Keuangan No 8. Jakarta: Lembaga Manajemen PPM dan Penerbit PPM