Question

Differnetiate b/w cash basis of accounting and accrual basis of accounting​

Answer 1

Explanation:

The basis of cash accounting is actual receipt and payment of cash. On the other hand, in accrual accounting, the recognition is done when the revenue or expense occurs.

Answer 2

Explanation:

cash : Recognizes revenue when cash has been received

accrual: Recognizes revenue when it’s earned (eg. when the project is complete)

cash : Recognizes expenses when cash has been spent

accrual: Recognizes expenses when they’re billed (eg. when you’ve received an invoice)

cash : Taxes are not paid on money that hasn’t been received yet

accrual : Taxes paid on money that you’re still owed

cash : Mostly used by small businesses and sole proprietors with no inventory

accrual : Required for businesses with huge turnover

Hope this answer is helpful and differences are sufficiently enough.

mark my answer as brainlist if you are satisfied

Thank you........