Home » Tags » Cash accounting
Cash accounting
What are the Advantages of Accrual Accounting Over Cash Accounting?
December 11, 2023
How does accrual accounting differ from cash accounting?
Accrual accounting records revenues and expenses when they're earned or incurred, while cash accounting logs transactions only when cash exchanges hands. Accrual accounting provides a clearer picture of a company's financial health by matching revenues with expenses in the same accounting period. It adheres to principles like the revenue recognition principle and matching principle.
Tags : Accrual Accounting , Cash Accounting , Financial Reporting