Give two difference between cash basis and accrual basis of accounting

1.	Give two difference between cash basis and accrual basis of accounting
Answer» \tCash Basis of AccountingAccrual Basis of AccountingOnly cash transactions are recorded in the books of accountsAll cash and non-cash transactions are recorded in the books of accountsCorrect profit or loss is not ascertained because it records only cash transactionsCorrect profit or loss are ascertained because of the complete record of all the transactionsEntries are made only when cash is received or paidEntries are made on accrual basis i.e. all transactions are recorded in the books of accounts whether incurred or earnedIt is rarely usedIt is widely usedIt is recognised under Companies Act, 1956It is not recognised under Companies Act, 1956\t

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