Please wait...
Contact Us
Contact
Need assistance? Contact us on below numbers

For Enquiry

10:00 AM to 7:00 PM IST all days.

Business Inquiry (North)

Business Inquiry (West / East / South)

OR

or

Thanks, You will receive a call shortly.
Customer Support

You are very important to us

For any content/service related issues please contact on this number

022-62211530

Mon to Sat - 10 AM to 7 PM

Differentiate between cash basis of accounting and accrual basis of accounting.

Asked by Topperlearning User 9th June 2016, 12:49 PM
Answered by Expert
Answer:

Cash Basis of Accounting

Accrual Basis of Accounting

Only cash transactions are recorded in the books of accounts

All cash and non-cash transactions are recorded in the books of accounts

Correct profit or loss is not ascertained because it records only cash transactions

Correct profit or loss are ascertained because of the complete record of all the transactions

Entries are made only when cash is received or paid

Entries are made on accrual basis i.e. all transactions are recorded in the books of accounts whether incurred or earned

It is rarely used

It is widely used

It is recognised under Companies Act, 1956

It is not recognised under Companies Act, 1956

 

 

 

Answered by Expert 9th June 2016, 2:49 PM
Rate this answer
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10

You have rated this answer 10/10

Your answer has been posted successfully!

Chat with us on WhatsApp