which basis of accounting gives a correct picture of operating results and financial position of a firm
Dear Student
The Accrual Basis of accounting provides a correct picture of operating results and financial position of a firm as it includes all transactions regardless of whether cash is involved in the same or not. You could read more about the Basis of Accounting in our study material by referring to the following link : https://www.meritnation.com/cbse/class11-commerce/studymaterial/accountancy/financial-accounting-part-i/theory-base-of-accounting/394_2364_14066
Regards
The Accrual Basis of accounting provides a correct picture of operating results and financial position of a firm as it includes all transactions regardless of whether cash is involved in the same or not. You could read more about the Basis of Accounting in our study material by referring to the following link : https://www.meritnation.com/cbse/class11-commerce/studymaterial/accountancy/financial-accounting-part-i/theory-base-of-accounting/394_2364_14066
Regards