Question.5158 - Discussion - Chapter 3What is the difference between the cash basis and the accrual basis of accounting?
Answer Below:
The xxx difference xxxxxxx the xxxx basis xxx the xxxxxxx basis xx accounting xxxx in xxx timing xx when xxxxxxxxx transactions xxx recorded xxx this xxx a xxxxx effect xx how x company's xxxxxxxxxxx is xxxxxxxxx The xxxx basis xxxxxxxxx only xxxxxxxx received xxx records xxxx expenses xxxx out xxxx is xxxxxxxxx easy xx implement xxxxx it xxxxx into xxxxxxxxxxxxx the xxxxxxxx of xxxx in xxx out xx the xxxxxxxx only xxx accrual xxxxx on xxx other xxxx acknowledges xxxxxxx as xx is xxxxxx and xxxxxxxx as xxxx are xxxxxxxx irrespective xx the xxxx exchange xxxx though xxxx is xxx exchanged xxx accrual xxxxxxxxxx records xxxxxxxx when xxxxxx and xxxxxxxx when xxxxxxxx it xxxxx requires xxxxxxxxx entries xx ensure xxx financial xxxxxxxxxx reflect xxx activity xx the xxxxxxx period xxx adjusting xxxxxxx are xxxxxxxx at xxx end xx a xxxxx accounting xxxxxx to xxxxxxx the xxxxxxxx earned xxx not xxxxxxxx or xxxxx incurred xxx not xxxxMore Articles From Accounting
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