Cash accounting is a method of bookkeeping that delays recording the revenues and expenses of a business until the cash is actually exchanged (i.e. when cash is actually received or paid out). By contrast, the accrual accounting method records revenues at the point they are earned and records expenses when a legal obligation to pay is created.
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Scooped by
Peter John Baskerville
onto Basic Accounting Concepts October 25, 2011 11:07 AM
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