Question

Name any two bases of recording accounting information.

Answer 1

two bases of recording accounting information are 

1)cash basis
2)accrual basis 

Answer 2

The two bases of recording accounting information are:

• Accounting on a cash basis: Revenue is recognized when cash is received, and expenses are recognized when bills are paid, according to the cash basis of accounting.
• This is the simplest method of keeping track of transactions, and it is often utilized by small firms.
• Accounting on an accrual basis: Revenue is recognized when it is earned, and expenses are recognized when they are consumed, according to the accrual foundation of accounting.

• Because accruals must be documented at regular periods, this method necessitates a deeper understanding of accounting.