What are the disadvantages of cash based accounting system


Problem

Accrual concept is one of the fundamental accounting concept which explains; Revenue is recognized when it's earned and not at the time of receipt; Expenses are recognized when its incurred and not at the time of payment.

What are the disadvantages of both the cash based accounting system and the accrual based accosting system?

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Financial Accounting: What are the disadvantages of cash based accounting system
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