Is Accrual Basis Accounting Better Than Cash Basis Accounting in Evaluating the Financial Performance?

This research aims to examine the role of accrual basis accounting and cash basis accounting in evaluating the financial performance. Our study uses the primary approach in collecting the required data through interviewing a sample of five financial analysts working in different companies. In addition, the study follows the qualitative approach in analyzing the collected data. The Results of study indicate that the cash basis accounting is better than accrual basis accounting in evaluating the liquidity position of the company while, Accrual basis accounting is better than cash basis accounting in evaluating the profitability position of the company.Supervision / Dr. Tarek EL Shazl