Bookkeeping

Accrual Accounting vs Cash Basis Accounting: What’s the Difference?

This account is a liability because the company has an obligation to deliver the good or provide the service in the future. If the company receives an electric bill for $1,700, under the cash method, the amount is not recorded until the company actually pays the bill. However, under the accrual method, the $1,700 is recorded as

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