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About LectureNotesOnCash and Accrual Accounting
There are two main methods for recording accounting transactions: the cash basis and the accrual basis. The cash basis records revenue when cash is received and expenses when cash is paid, while the accrual basis records revenue when earned and expenses when incurred. While the cash basis is easier to use, the accrual basis provides a more accurate picture of profitability by matching revenues and expenses in the same reporting period. Larger companies use the accrual basis for financial auditing and reporting purposes. The main difference between the two methods is the timing of when revenue and expenses are recognized.
Detailed Information
| Author: | ['April Joy Obedoza'] |
|---|---|
| Publication Year: | 2021 |
| Pages: | 2 |
| Language: | English |
| Format: | |
| Price: | FREE |
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