How is cash-basis accounting different from accrual-basis accounting?

Introduction to Accounting IV

Ismael Fernandez

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Feb 20 · 2 min read

All articles are written or co-written by Vincent V. Triola

There are two common bases used to prepare the statements; cash basis and accrual basis. Accrual basis is the most widely used accounting method, as most companies conduct business using credit. According to…