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Bases of Accounting

Cash Basis and Accrual Basis


After going through this lesson, you shall be able to understand the following concepts.

• Cash Basis of Accounting
• Accrual Basis of Accounting
• Difference between Accrual & Cash Basis

Cash Basis of Accounting    

The cash basis of accounting recognises revenue and expenses at the time of actual receipt or payment of cash.

The cash basis of accounting is less accurate than accrual basis of accounting as they affect the company’s books…

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