HSM-260 wk 2 checkpoint~ Accrual Method

HSM-260 wk 2 checkpoint~ Accrual Method - Running head:...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Running head: ACCRUAL METHOD 1 Accrual Method Anna Borsick HSM-260 November 17, 2011 Marilyn Gardner
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
ACCRUAL METHOD 2 Accrual Method When referring to the term accrual accounting, they are referring to transactions documented when revenues are earned as well as the expenses incurred by a non-profit agency. This accrual accounting method is much different than cash accounting in this; the private non- profit agency does not have accounts receivable or account payable. Only cash coming into and going out of the agency’s account would be factored. This type of accounting would not show the agencies complete financial history so to speak. For this reason, accrual accounting is the superior method when looking at the “big picture” of the agencies finances and to see where they stand economically. In an accrual system according to the Business Accounting Guide.com (2011), revenue equals cash. “Under accrual accounting, an entity recognizes and reports revenue when revenue is earned for the period, regardless of whether or not cash is actually received” (Business
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

HSM-260 wk 2 checkpoint~ Accrual Method - Running head:...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online