Pembahasan Ujian PAI: A40 – No. 19 – Mei 2011

The conceptual framework of financial accounting:

• accrual basis accounting, a company records revenues whe they are earned and expenses when they are incurred, even if cash has not actually changed hands
• cash basis accounting is a system which a company recognizes revenues or expenses only when it receives or disburses cash
• modified cash-basis accounting is actually a combitnation of cash –basis and accrual basis accounting know as modified cash basis accounting

^[1] Mulligan, E. and Stone, G. (1997). Accounting and financial reporting in life and health insurance companies. Atlanta, Ga.: Life Management Institute, LOMA.