What is the difference between the cash basis and the accrual basis accounting shorts

#accounting #accountinglectures #jobs #accountancy #class12 #class11 #revenue #cashbasis #accrualbasis #cashbasisvsaccrualbasis What is the difference between the cash basis and the accrual basis? Tricky questions - Accountant job interview questions 1 Cash basis accounting records revenues and expenses when cash is received or paid, while accrual basis accounting recognizes revenues and expenses when they are earned or incurred, regardless of cash movements. Cash basis provides a simple view of cash flow but may not accurately represent a company's financial position. Accrual basis offers a more comprehensive picture, matching revenues and expenses to the accounting period they occur in, enabling better analysis. Accrual basis is commonly used by larger businesses, while cash basis is simpler and often used by small businesses or individuals.

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