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  • 1.  Accruals

    Posted 04-15-2022 19:04
    I've learned from my professor that there are 2 types of accountants: Balance Sheet and Income statements. I am a balance sheet accountant. In my opinion, based on my experience, there is not enough emphasis put on accrual and accounts payable balances. If I was auditing an organization, I would place no materially level on accrual balances and ask for a listing of every transaction encompassing that balance. Accruals do not play a factor in financial ratios and can be misleading. For example, you can be accruing invoices and misstating your Accounts Payable balance. Your AP balance is a contributing factor to fanatical ratios.

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    Sarmad Azhar, CSSC_CLSSGB, CMSA®, CFE, CBCA®,, FMVA®, FP&A, MSA, MSHCM

    Aubrey TX
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