Business Valutaion and Analysis 2017 By student name Professor University

6 Question 1 Cash Basis – In cash basis of accounting, the transactions are recorded only when there is an actual inflow or outflow of cash. Accrual Basis – In accrual basis of accounting, the transactions are recorded, as and when they happen, for example, revenue are recorded when earned and expenses are recorded accordingly. Distinguished: The main difference between cash and accrual basis of accounting is timing, in case of cash basis, the revenues are recorded in the period in which the cash is