ACC 557 Week 2 Discussion 2

ACC 557 Week 2 Discussion 2 - As for cash basis accounting,...

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Week 2 Discussion 2 Discuss the differences between accrual-basis financial statements and cash-basis financial statements. Determine which provides more useful information and the reasons it is more useful. The thing about accrual basis and cash basis is that the accrual accounting consists of when the company would record all their transactions within that period which they occurred. Whether the exchange of payment was taken or not, it needs to be recorded.
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Unformatted text preview: As for cash basis accounting, the company will record the transaction when the cash is actually received. The difference between the two, I believe is when it is recorded on paper. The recording is what the company refers to, to check when revenue and expenses take place instead of when or how they were received. Recording the data as it happen or when it is needed to be recorded keeps the company in the loop of the revenue and expense the company has....
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This note was uploaded on 01/16/2012 for the course ACC 557 037VA016-1 taught by Professor Kimberlydillman during the Spring '11 term at Strayer.

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