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Matching or Accrual
The accrual concept makes a distinction among the receipt of cash and the right to receive it, and the payment of cash and legal obligation to pay it. In fact business operations, the obligation to pay and the actual movement of cash might not coincide.
The accrual concept needs recognition of revenue and expenses on a comparable basis that is revenue and expense are allocated to a particular accounting period on a consistent basis.
Case Study based on Financial Statement Analysis of Hatsun Agro Private Limited 800x600 Normal 0 false false false EN-IN X-NONE X-NONE
You are required to compute the value of both the firms using Net Income approach.
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