What's the difference between "cash" and "accrual" methods?

Answer 1

Under cash accounting, you record transactions when you pay or receive payments. Under accruals accounting, you record transactions when you have a reasonable expectation of having to pay or getting paid.

For example, you sell something on credit and get paid 30 days later. If you use cash accounting, you record a sale when you receive the payment. Under accruals accounting, you record the sale (and related increase in accounts receivable) when you ship the order; when payment comes in, you record an increase in cash and a decrease in accounts receivable.

Answer 2

Cash- Revenue is recognized in the period cash was received, expense are recognized in the period cash is paid.
Accrual-revenue is recognized in the period the money is earned, expense are recognized in the period incurred in the process of generating revenue, in other words in the cash method you claim the cash when you get the cash, in the accrual method you claim cash when you invoice or bill (account receivable)