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Forums › ACCA Forums › ACCA FA Financial Accounting Forums › Why accounts receivable is added to convert cash to accrual basis net income?
Revenues plus gains less expenses and losses for a period equals net income or net loss. Doesn’t it? So why accounts receivable is added to convert cash basis to accrual basis net income?
I know accounts receivable is treated only in accrual basis, but adding accounts receivable is against ‘net income=revenues + gains – expenses – losses’ formula.
