Explain the differences between cash and accrual accounting.

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: When opposed to cash-basis accounting, does accrual-basis accounting offer more meaningful…

A: Under cash basis accounting, transactions are recorded when the cash is actually paid or received.…

Q: Explain the importance of cashflow statements.

A: Cash flow statement is one of the important financial statement that is being prepared by the…

Q: Discuss the conversion from cash to accrual basis of an increase in accounts or notes receivable

A: In cash basis accounting the transactions are recorded when the cash related to them is issued or…

Q: Define cash and cash equivalents and explain how to report them.

A: Cash and cash equivalents are the current assets of a company which are available as cash or readily…

Q: What are the considerations for recording and recognizing cash discounts received?

A: Cash discounts, also known as sales discounts or prompt payment discounts, are reductions in the…

Q: Describe reconciliation with change in cash balance.

A: A cash flow statement is used to reconcile with change in cash balance. It shows the cash flow in…

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: What is the difference between the sources (in nows) and uses (out nows) of cash?

A: The question is based on the concept of cash flow statement and cash flow analysis for a particular…

Q: Briefly explain the difference between cash accounting and accrual accounting. State two examples…

A: Cash Accounting: A form of accounting in which receipts are reported during the period in which they…

Q: What is the difference between Notes Payable and Accounts Payable?

A: Introduction: Accounts payable  is an account within the general ledger that represents a company's…

Q: Discuss the recognition, measurement and disclosures for 'cash' as per accounting standards

A: Cash is considered as the most liquid asset or quick asset for the business in the balance sheet…

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

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: Why is the accrual basis of accounting generally preferred over the cash basis?

A: Accrual accounting aims to record the impacts of accounting events in the period when such events…

Q: the income statement distinguish between cash outflows and cash inflows. Please provide two examples…

A: Cash outflows mean any money going out from the business via expenditure incurred. Cash inflows mean…

Q: What are the different risks associated in the accounting of cash

A: The element of risk arises in each and every area and how well we can minimise or reduce the risk is…

Q: Using an example, compare and contrast physical delivery and cash settlement?

A: The two most prevalent stock derivatives traded on a stock market are futures and options. These are…

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: rual profit

A: Difference between Cash and Accrual Profit The cash basis and accrual basis of accounting are two…

Q: Why do net income and net cash flow differ?

A: Net income vs Net cash flow: