Purchase Solution

Cash basis versus accrual basis: Chart and discussion

Not what you're looking for?

Ask Custom Question

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

Purchase this Solution

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.

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 provided by:
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
Recent Feedback
  • "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
  • "Thank, this is more clear to me now."
  • "Awesome job! "
  • "ty"
  • "Great Analysis, thank you so much"
Purchase this Solution

Free BrainMass Quizzes
Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.


This tests some key elements of major motivation theories.

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

Learning Lean

This quiz will help you understand the basic concepts of Lean.

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.