Question

cash and mercantile system of accounting​

Answer 1

Accrual system of Accounting is also known as the mercantile system of accounting wherein the transactions are recognized and recorded as and when they take place. Under the accrual accounting method, the revenue is recorded when it is actually earned, and the expenses are reported when they are incurred.

Answer 2

Explanation:

Definition of Cash Accounting

The basis of accounting in which the revenues and expenses are recognized only when cash is actually received or paid. In cash accounting method, the income or expense is recognised when the inflow or outflow of cash exists in reality.

The Cash basis accounting method is mostly used by sole traders, proprietors and other professionals who record their income when there is an actual inflow of cash and expenses of the entity