The Usefulness of Accounting Models in Providing Accounting Information in Romania

Abstract

The evolution of the business environment under the impact of globalization highlights the increase of social expectations through which it considers the success of the economic entity, measured and recognized in various forms of expression, based on the indicators of performance in terms of accounting information. The purpose of this chapter is to present the models of “cash accounting” and “accrual accounting” in terms of conceptual and empirical, comparative, right next to the main similarities and differences between them, and the usefulness of accounting information produced by them in the decision-making process by users of accounting information. The use of one or the other accounting model makes the accounting information different, respectively creating a different picture of financial performance, the parties concerned, in many cases, to request additional information. It is therefore of interest to be known options regarding the production of accounting information, indicators for measuring the financial performance of the entity.