3 ms·
It's more of a technical note, but probably the last really important change was the accrual basis, which, as far as I know, was popularized in the 20th century
by colorint 9y ago
It's more of a technical note, but probably the last really important change was the accrual basis, which, as far as I know, was popularized in the 20th century. This is the system of accounting where you record revenues and expenses when you become aware of them, rather than when you pay them, so many things end up being recorded as debts. Notably, this is the currently-accepted way of doing accounting.
- cbr 9y agothis is the currently-accepted way of doing accounting Cash basis is also accepted, and generally used by very small businesses where accrual accounting is too complicated.
- colorint 9y agoCash basis is accepted for the purposes of taxes, but my understanding is that it's not acceptable for legally-mandated reporting. That is, cash basis is not among the generally accepted accounting principles.