The accrual concept is the concept that attempts to correctly match all accounting expenses (costs) to the revenues (revenues) of the year in which they occur in that accounting period, thus referred to as accrued expenses. While going concern assumes that each company will continue to operate for the expected future, going concern is for several years, unless there is evidence, such as owner recognition. In the Introduction to the Marriott Accounting Book, Edwards & Mellett 3rd Edition it states: “The going concern concept assumes that the business is a continuing enterprise and will not be liquidated in the foreseeable future.” However, problems may arise in companies that apply the two concepts, provisions and going concern. First looking at the accrual concept, "Under the accrual concept, revenues and expenses are credited or debited to the profit and loss account for the year in which they are earned or incurred, not when money is received or paid" (http: / /www.tutor2u.net/newsmanager/templates/?a=1373&z=82 ). Therefore this manipulates the accounting statement so that the income shown is not what the company received and therefore the concept attempts to spread the costs. Therefore the concept gives a false picture of what cash reserves are available within the company, which could lead to serious cash flow problems. For example, your revenue register may show thousands of dollars in sales, while in reality your bank account is empty because your debtors haven't paid you yet, so problems will arise when your debtors have difficulty paying off the credit, or they may delay the payment due to unexpected factors, this will affect the company's working capital, which is the amount the company has for daily expenses. Therefore, the profit shown in the profit and loss account or balance sheet is unrealistic, in short this reflects a false picture of the actual business performance at the end of the accounting period, i.e. every year. The main purpose of recording business transactions, so-called financial accounting is clearly defined in Andrew Thomas's Introduction to Accounting Book 5th Edition: "Financial accounting is the process of designing and managing an information system for collecting, measuring and recording financial an enterprise's transactions and summarize and communicate the results of transactions to users." The part I want to draw attention to on the definition is "communicating to users", so if there is a misrepresentation of company liquidity or profit for the company in that short-term period, external users of the financial information i.