Accounting Methods
Accounting Methods Two types of accounting methods exist in the business environment: cash basis and accrual. The cash basis method recognizes and records financial transactions when cash changes hands between parties. Accrual accounting recognizes and records financial transactions as they occur, regardless of when cash changes hands during the transaction. Application of Accounting Methods The cash model is only acceptable for smaller businesses for which a majority of transactions occur in cash and the use of credit is minimal....
