Give four differences between cash basis and accrual basis of accounting?

Dear Student,

The solution to your query is already available in our site. ​Please go through the following link.
https://www.meritnation.com/cbse/class11-commerce/studymaterial/accountancy/financial-accounting-part-i/theory-base-of-accounting/394_2364_14066#slide4_systems-of-book-keeping-and-basis-of-accounting
Hope this answers your query.
Keep Posting!!!
 

  • 0
i) recording- cash basis of recording records only cash transactions while in the accrual basis both cash and credit transactions are recorded.
ii) reliable- cash basis of accounting is less reliable as compared to accrual basis of accounting.
iii) suitability- cash basis of accounting is suitable for small or tiny busines firms while accrual basis is suitable for all types.
iv) prepaid / outstanding- transaction which are prepaid or outstanding are not recorded in cash basis but are recording under accrual basis.
v) accuracy- cash basis is less accurate while accural basis is more accurate.
  • 16
What are you looking for?