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Cash and Accrual Accounting

What is the difference between cash and accrual accounting? Which basis of accounting do most companies use, cash or accrual? Why? Which method is approved by GAAP? Why? Which method does the IRS prefer? Is it legal for an organization to keep two sets of accounting records? Why or why not? Please make sure if part of this question is answered. thank you.

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Cash Accounting is the accounting system whereby only cash receipts and payments are recorded on the books as they occur. Thus, no accounting records are made when goods and services are bought or sold on credit: the recording of the transaction is delayed until the cash payment actually takes place. Similarly, cash accounting does not generally recognize non-cash expenses such as depreciation. On the other hand, in accrual accounting recognition of revenue, expenses, ...

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The solution explains the difference between cash and accrual accounting? Which basis of accounting do most companies use, cash or accrual? Why? Which method is approved by GAAP? Why? Which method does the IRS prefer? Is it legal for an organization to keep two sets of accounting records? Why or why not? Please make sure if part of this question is answered. thank you.

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