the complete idiot’s guide to the election., page-92

"Please do read up on accrual accounting .. because we would have been insolvent if they had continued drilling. That's my opinion after having looked at the cashflows."

Hi SH,

It seems that you forgot this part that I have highlighted below roflmao.




"ACCRUAL ACCOUNTING"

Definition:

"Accounting method that records revenues and expenses when they are incurred, regardless of when cash is exchanged. The term "accrual" refers to any individual entry recording revenue or expense in the absence of a cash transaction."

In case that you haven't noticed, if and when you are applying the ACCRUAL BASIS OF ACCOUNTING, you have to apply it to both sides of the Ledger.
And that is to both the revenue side and the expense side.

Now, while it is also clear that you have applied it to the expense side of things, it is obviously also clear that you forgot about the Revenue side.

Was it intentional to suit your own needs. Was it just because you don't know much about Accounting. Or was it just to prove to the Forum that you are wrong??

Unless of course you are still learning about it.

Most importantly though, the accrual basis of accounting specifically states that it applies when "The term "accrual" refers to any individual entry recording revenue or expense in the absence of a cash transaction."

Please note the part about the absence of a cash transaction.

I am once again having to advise you that before you post and/or venture into an open sea, you should do some proper research and/or make sure that there are no leaks on your boat. For, if the boat will start leaking, chances are that you will sink.

All is good im my camp mate. And it will always be.

Cheers