Discuss Cash and Accrual Basis of Accounting. – InterviewSolution

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1.	Discuss Cash and Accrual Basis of Accounting.
Answer» cash basis - The cash basis is a method of recording accounting transactions for revenue and expenses only when the corresponding cash is received or payments are made. Accrual Basis -Under the accrual basis of accounting (or accrual method of accounting), revenues are reported on the income statement when they are earned. When the revenues are earned but cash is not received, the asset accounts receivable will be recorded.

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