Question

difference between accurual basis of accounting and cash basis of accounting on the basis of higher/lower income in case of prepaid expanses and accurued income nature of transaction reliability​

Answer 1

Answer:

The difference between cash and accrual accounting lies in the timing of when sales and purchases are recorded in your accounts. Cash accounting recognizes revenue and expenses only when money changes hands, but accrual accounting recognizes revenue when it's earned, and expenses when they're billed (but not paid

Step-by-step explanation: