A Study of the Advantages and Disadvantages of Changing the Accounting System of the Russell State Bank from Cash Basis to Accrual Basis

Author

John T. Harrell, Fort Hays Kansas State College

Document Type

Thesis - campus only access

DOI

10.58809/CYVT7110

Date of Award

Spring 1973

Degree Name

Master of Science (MS)

Department

Economics, Finance, & Accounting

Advisor

Dr. Milburn Little

Abstract

The purpose of this thesis was to present the complete results of changing the accounting method of The Russell State Bank from cash basis to accrual basis. Advantages and disadvantages of each system are reviewed. Comparison is made of the accounts under each method and detail procedure of the change. Generally accepted accounting principles were followed, which included restoration of assets to cost and depreciation recorded as well as accruing the income and expenses. Provisions were made for possible loan losses and income tax expense. The change was effected as of December 31, 1970, and after two years under the accrual basis it appears that the change from cash basis to accrual basis does present more accurate financial statements on a monthly basis. The idea of accrual accounting being costly and complex is without basis.

Comments

For questions contact ScholarsRepository@fhsu.edu

Recommended Citation

Harrell, John T., "A Study of the Advantages and Disadvantages of Changing the Accounting System of the Russell State Bank from Cash Basis to Accrual Basis" (1973). Master's Theses. 1450.
DOI: 10.58809/CYVT7110
Available at: https://scholars.fhsu.edu/theses/1450

Rights

© 1973 John T. Harrell