Write down the difference between Cash basis system and Accrual basis system
Cash : It is a system in which accounting entries are made only when cash is received or paid. Cash basis system means the same as money, which is immediately available. Professional people record there income while any cash or cheque received, similarly record as expenses when actually cash or cheque paid both are in a liquid manner.
Accrual : It is a system in which accounting entries are
made only the basis of amounts having became due for payment or received. In
accrual basis system the interest or
investment is the adding together for different cases over a period of time.
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