What is the difference between accrual-basis accounting and cash-basis accounting?
Question:
What is the difference between accrual-basis accounting and cash-basis accounting?
Accrual-Basis and Cash-Basis Accounting:
Accrual-Basis and Cash-Basis Accounting are two accounting methods of recording transactions during the period. Cash-basis is usually used in complying with government documents like paying tax.
Answer and Explanation: 1
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View this answerCash-basis and accrual-basis accounting differ in the recognition of income and expenses. Under cash-basis accounting, the revenue and expenses are...
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Chapter 4 / Lesson 3Learn about the difference between cash and accrual accounting. See accrual vs. cash basis accounting examples, and identify benefits of the two types of accounting.