Topic

Cash Basis vs. Accrual Basis

Instructions

Please watch the “Cash Basis vs. Accrual Basis” video. What are some key points?

Answer preview

The video has done recommendable work of demonstrating the difference between accrual basis and cash basis. According to the video, accrual and cash basis are the two accounting techniques which business organizations can select when deciding how they want their books done. The main difference between the two accounting methods is that cash basis only documents revenue when cash is obtained and not a period prior. It also only realizes an expense when cash has been given out.

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