| Popis: |
At the moment in Romania there is a bolding of the phenomenon of dissolution of societies with limited liability and starting a business by the associates of these companies, individually, through so-called Authorized Individuals (PFA). Analyzing this phenomenon, you may find that the financial side is the primordial element that determines such a decision. This paper presents a case study on the influence of accounting models 〞cash〞 and 〞accrual〞, comparing the results of activity of the five companies, in five different areas of activity over a period of five years. The purpose of the research is to determine the elements that differentiate the result by using an accounting model 〞cash〞 or 〞accrual〞. It is found that, in some companies, the gross result established based on the accrual accounting is totally different from that determined based on the cash method. One of the reasons for such differences may be the duration of settlement of receivables and payables. |
