Two methods of accounting are accrual and cash-basis.

Q: Differentiate between the accrual method and cash method?

A: The Cash Method: Revenue is reported on the income statement only when cash is received. Expenses…

Q: Revenue and Expense Accounts Are revenue and expense accounts equal to equity in how cash is a part…

A: Revenue: Revenues are earnings of business by sale of goods and services in business. It is earned…

Q: What is the purpose of adjusting entries as they relate to the difference between cash accrual…

A: Introduction The Main purpose of adjusting entries is to convert all cash transactions into accrual…

Q: Discuss the differences between cash basis accounting and accrual basis accounting. What are the…

A: The fundamental principle of accrual basis accounting is the matching principle, which aims to match…

Q: The assumption that requires that only those things that can be expressed in money are included in…

A: The generally  accepted principles of accounting are called concepts.The concept guide the…

Q: Under accrual-basis accounting,sales made on credit are usually reported as: A.liabilities…

A: There are two type of bases used in accounting purpose. One is cash basis of accounting and other is…

Q: What is the primary difference between cash and accrual accounting?

A: The business revenues and expenses can be recorded on the basis of cash or accrual.

Q: Revenues and expenses must be recorded in the accounting period in which they were earned or…

A: The income and expenses are recorded in the income statement to estimate the profitability of the…

Q: b) Explain the difference between Accrual and Cash Accounting. Give an example to assist in your…

A: Under the Cash Basis of Accounting, revenue is considered only when the actual amount is received…

Q: What is the purpose of the accrual accounting method, and how does it differ from the cash…

A: The revenue and expenses are recorded in the books differently. Under cash basis accounting, the…

Q: Explain the difference between the current account and the capital and financial account in the…

A: The balance of payment shall be the record of payment or receipt between a nation and a national of…