Asked Nov 24, 2019

Differentiate between the accrual method and cash method?


Expert Answer

Step 1

The Cash Method: Revenue is reported on the income statement only when cash is received. Expenses are only recorded when cash is paid out. The cash method is mostly used by small businesses and for personal finances.


The Accrual Method: Revenue is accounted for when it is earned. Typically, revenue is recorded&nb...

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