accrual basis

简明释义

权责发生制

英英释义

例句

1.A small business might choose to use the accrual basis for tax purposes to better match income and expenses.

小企业可能会选择出于税务目的使用权责发生制，以更好地匹配收入和费用。

2.Many accountants prefer the accrual basis because it aligns income with the expenses incurred to generate that income.

许多会计师更喜欢权责发生制，因为它将收入与产生该收入的费用对齐。

3.Under the accrual basis, a company records revenue even if the cash has not yet been received.

根据权责发生制，公司即使尚未收到现金也会记录收入。

4.The company prepares its financial statements on an accrual basis, which means revenues are recognized when earned and expenses when incurred.

公司按照权责发生制编制财务报表，这意味着收入在赚取时确认，费用在发生时确认。

5.Using an accrual basis allows businesses to present a more accurate picture of their financial position.

使用权责发生制可以让企业更准确地呈现其财务状况。

作文

In the world of accounting, understanding different methods of recording financial transactions is crucial for both businesses and individuals. One such method is the accrual basis, which provides a more accurate picture of a company's financial health compared to the cash basis of accounting. The accrual basis (应计基础) recognizes revenues when they are earned and expenses when they are incurred, regardless of when cash is actually exchanged. This approach aligns with the matching principle, which aims to match revenues with the expenses incurred in generating them. For instance, consider a company that provides consulting services. If the company completes a project in December but does not receive payment until January, under the accrual basis (应计基础), the revenue would still be recorded in December. This reflects the reality that the service was provided and the company has earned that income, even though the cash has not yet been received. Similarly, if the company incurs expenses for materials used in the project in December, those expenses would also be recognized in December, aligning the costs with the revenue generated from the project. The advantages of using the accrual basis (应计基础) are significant. Firstly, it provides a clearer picture of a company's financial performance over time. Investors and stakeholders can see how well the company is doing based on the revenues earned and expenses incurred, rather than just the cash flow. This can be particularly important for businesses that experience significant fluctuations in cash flow, as it allows for better financial planning and forecasting. Moreover, the accrual basis (应计基础) is often required by generally accepted accounting principles (GAAP) for publicly traded companies. This means that investors rely on this method to make informed decisions about where to allocate their resources. Additionally, using the accrual basis (应计基础) can help businesses identify trends and patterns in their financial data, enabling them to make strategic decisions based on comprehensive insights rather than short-term cash movements. However, the accrual basis (应计基础) also has its challenges. It requires more complex record-keeping and accounting processes, which can be burdensome for smaller businesses without dedicated accounting staff. Furthermore, because it does not focus solely on cash transactions, it can sometimes give a misleading impression of a company's liquidity. A business may appear profitable on paper while struggling to meet its immediate cash obligations. Therefore, it is essential for business owners to complement the accrual basis (应计基础) with cash flow analysis to get a complete picture of their financial situation. In conclusion, the accrual basis (应计基础) of accounting is a vital tool for accurately assessing a company's financial performance. By recognizing revenues and expenses when they occur rather than when cash is exchanged, businesses can gain valuable insights into their operations and make more informed decisions. While it comes with its complexities, the benefits of using the accrual basis (应计基础) far outweigh the drawbacks, making it an essential practice for any serious business owner or investor.