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    Cash basis versus accrual basis: Chart and discussion

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    What are the major differences between cash basis accounting and accrual accounting? Which one uses the basic accounting equation?

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    Solution Preview

    See the attached file.

    This is probably the hardest concepts for financial accounting students to grasp! I have attached a word document that should help you see the difference between cash and revenue and expenses with a chart and several JE examples. Please look at ...

    Solution Summary

    This solution not only answers the stated question but also presents a table and sample journal entries to show the students how events and the settling of those events in cash are not the same and WHY.