24 Sep When We Talk About Cash Accounting And Accrual Accounting We Must Understand That The Only Difference Between Both The Accounting Methods Is Of Timing. Cash Basis Of Accounting Says That The Sale And Purchase Must Only Be Recorded When Cash Is Actually Pa
When we talk about cash accounting and accrual accounting we must understand that the only difference between both the accounting methods is of timing. Cash basis of accounting says that the sale and purchase must only be recorded when cash is actually paid whereas the accrual accounting says that a sale or purchase must be recorded as soon as it takes place. Accrual accounting is usually used in the organization where all the dealing is done on credit basis. The only difference between the methods is timing; when is the sale recorded? Also, if sold on credit, when do we expect to see money?
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