Answer to Question #79335 in Finance for Hugh Heron

Question

What is accrual accounting and why is it the preferred method for accounting?

Discuss the application of policies and procedures to managing accounting information.

What are the key management information requirements

Answer 1

Accrual accounting is an accounting method that measures the performance and position of a company by recognizing economic events regardless of when cash transactions occur.
Management accounting information is focused at internal managers and decision makers. Its intended use is to provide financial data relevant to a manager's operations in an effort to make sound business decisions.
What is important is that evidence of your activities is recorded in a way that supports your agency's business needs.
Your agency should have procedures in place to ensure all information and records are created routinely by staff and safeguarded in a system that will keep them authentic, reliable and useable for as long as they are needed.
Source:
https://www.naa.gov.au/information-management/managing-information-and-records/creating/Requirements/index.aspx