Cash vs. Accrual Basis Accounting

 

For every entrepreneur, the main purpose of accounting is to find out how much they eventually earned. However, the information displayed in the financial statements may differ from expectations.

And here the question arises - why? To avoid such a misunderstanding, they must find out which accounting methods were used– cash or accrual basis...

 

 

For every entrepreneur, the main purpose of accounting is to find out how much they eventually earned. However, the information displayed in the financial statements may differ from expectations.

And here the question arises – why? To avoid such a misunderstanding, they must find out which accounting methods were used– cash or accrual basis…