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Cash basis of accounting vs. the accrual basis

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Some accountants advocate the use of the cash basis of accounting rather than the accrual basis of accounting. Do you think that the cash basis of accounting should be allowed? Why, or why not? Under which circumstances? Find a minimum of one resource that supports your position, and include the reference in your post.

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Meaning of Accrual basis of accounting:
In accrual basis of accounting, the income is reported as soon as it is earned and expenses will be reported as soon as they are incurred. In accrual basis, the company has the discretion as to when the income and expense can be recognized. Revenue is recognized when the revenue is earned and the revenue is realized or realizable. Likewise, expense is recognized when the related revenue is recognized.

The cash basis of ...

Solution Summary

This solution compares and contrasts the accrual basis and cash basis accounting methodologies.