•Describe when each method (cash basis and accrual basis accounting) would be appropriate to use.?

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•Describe when each method (cash basis and accrual basis accounting) would be appropriate to use.?

2007-06-19 01:18:07 · 3 answers · asked by Jessica 1 in Business & Finance ➔ Other - Business & Finance

3 answers

The 3 sites below give you a good idea of cash vs accrual basis of a/cg.

2007-06-19 16:28:01 · answer #1 · answered by Sandy 7 · 0⤊ 0⤋

If the quantum of expenditure or income are certain and can be reasonably estimated, then accrual system of accounting shall be ideal. Otherwise, Cash basis can be adopted.

2007-06-19 10:21:38 · answer #2 · answered by somamuthu 1 · 0⤊ 0⤋

It depends on the kind of company you want to keep books for and the transactions you deal in.

Please elaborate.

2007-06-19 08:23:42 · answer #3 · answered by alx 2 · 0⤊ 0⤋