Research on the Impact of the Accounting Model on the Financial-Economic Performance

Author:Univ. Prof. Tatiana DĂNESCU, Ph. D.; Luminiţa RUS, Ph. D. Student

JEL:M41

DOI:

Keywords:accrual basis, cash basis, financial-economic performance, Profit and Loss, Cash Flow

Abstract:
The fierce competition among more and more economic entities participating in an economic market, places in the centre of the attention the financial and economic performance and the circumstances in which this is carried out. Whereas the model of accrual accounting recognizes revenue and expenditure commitments at the time they occur, the cash accounting method recognizes it only at the time of receipt or disbursement, the study of the impact of the accounting model on the economic-financial performance constitutes an essential approach to find answers to the questions: The accrual accounting model offers the same information on the performance indicators as well as the cash accounting model? The accounting model has an impact in showing an image of the economic-financial performance? The importance of realizing the difference between the level of the economic-financial performance showed in terms of the elements taken from the profit and loss statement – as a document showing income and expenses – and of the statement of cash flows - as a document showing receipts and payments – constitutes a priority objective in research, useful for the continuity of business.\r\n

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