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PPT_for_Section_2_without_in-class_assignment

PPT_for_Section_2_without_in-class_assignment - ACC 200...

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ACC 200 Fall 2010 Section 2: The Cash Basis of Accounting Roby B. Sawyers, CPA, Ph.D. College of Management
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To record your attendance, click on “1” 2 Answer Now 30 1. Yes, I am here today!
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3 Primary Topics Cash basis vs. accrual basis An Issue of Timing When is Revenue recognized? When are expenses recognized? Accounting for Business Transactions
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4 Revenue Recognition Cash Basis – when cash is received from a customer Accrual basis – when the revenue is earned (which may be before or after the cash is received!)
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5 Expense Recognition Cash Basis – When cash is paid for costs incurred Accrual Basis – When expenses are incurred which may be before or after the cash is paid!
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6 Accounting for Business Transactions Transaction A simultaneous exchange between one accounting entity and another Customers, suppliers, employees, owners (shareholders), creditors etc.
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7 Accounting for Business Transactions Transactions are recorded in accounts using a variety of
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