Financial statements are prepared under the Accruals Basis of accounting which requires that income and expense must be. Recognized in the accounting periods to which they relate rather than on cash basis. An exception to this general rule is. The cash flow statement whose main purpose is to present the cash flow effects of transaction during an accounting period.
.The preparation of financial statements based recognition of accounting to income and expenses to get to know in the accounting period to link. Instead of cash, cash flow statement, with the main purpose is to
Financial statements are prepared under the accruals basic of accounting
, accruals prepayments Basis
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