On the other hand, (Adrianna and Alexandra, n.d. ) are highly critical of the above view of accrual accounting being more preferred than cash accounting as cash accounting is more favourable...
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...nesses in particular small businesses. However, Linda, (2007, p.11) argues that cash accounting "does not match revenues and expenses to the actual period in which the transactions occurred". Therefore this becomes a disadvantage for cash accounting. On the other hand, Linda ( 2007, p.11) claims accrual accounting may be seen as a better alternative to cash basis as this method unlike cash accounting does "provide a better analytical tool because it closely matches revenues and expenses to the actual period in which the transactions occurred". Despite the accrual accounting method being described by Linda ( 2007, p.11) as a "complex double entry system of accounting" it does provide a more accurate image and detailed information on the financial position and performance of a company which is crucial, therefore an advantage as it produces valid and useful reports.
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