Accrual versus Cash-Basis Accounting Methods: An Agency-Theoretic Comparison
In an agency setting with moral hazard, this paper analytically demonstrates that accrual accounting is superior to cash-basis accounting (subject to costs). The main reason is that accrual accounting information more fully reflects the overall effects of managerial actions or efforts on future cash...
Saved in:
| Main Author: | |
|---|---|
| Format: | text |
| Language: | English |
| Published: |
Institutional Knowledge at Singapore Management University
1989
|
| Subjects: | |
| Online Access: | https://ink.library.smu.edu.sg/soa_research/699 http://dx.doi.org/10.1016/0278-4254(89)90015-x |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Institution: | Singapore Management University |
| Language: | English |
Be the first to leave a comment!