Question

What is cash basis and accrual basis of accounting?

Answer 1

Cash Basis-

In this system of accounting transactions are recorded when cash is received or payed.

Accrual Basis-

Under this type of accounting all the expenses n income which occur during the year are recorded whether it is in cash or credit.

Answer 2

Answer:

under this basis, incomes are not recorded unless they are received in cash. similarly, expenses are recorded only when they are paid in cash.