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Tags
#cfa-level-1 #reading-23-financial-reporting-mechanics
Question
Accrual entries occur due to timing differences between cash movements and accounting recognition

Cash movement occurs at the same time as the revenue/expense

Cash movement
occurs [...]
Answer
before or after accounting recognition.

And you need accruals

Tags
#cfa-level-1 #reading-23-financial-reporting-mechanics
Question
Accrual entries occur due to timing differences between cash movements and accounting recognition

Cash movement occurs at the same time as the revenue/expense

Cash movement
occurs [...]
Answer
?

Tags
#cfa-level-1 #reading-23-financial-reporting-mechanics
Question
Accrual entries occur due to timing differences between cash movements and accounting recognition

Cash movement occurs at the same time as the revenue/expense

Cash movement
occurs [...]
Answer
before or after accounting recognition.

And you need accruals
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ting recognition of revenue or expense, there are only a 2 possibilities. First, cash movement and accounting recognition can occur at the same time, in which case there is no need for accruals. Second, cash movement may <span>occur before or after accounting recognition, in which case accruals are required.<span><body><html>

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