Cash Basis vs Accrual Basis Accounting (Simple Differences)

🔥 Accounting Student Accelerator! - 85% OFF

Financial Accounting Accelerator 👉 http://bit.ly/fin-acct-review

Managerial Accounting Accelerator 👉 http://bit.ly/aua-mgr

What is the difference between cash basis and accrual basis accounting? In this video, I show you in excel exactly the main differences between cash basis and accrual basis accounting. We use a real-world business and got through 3 transactions and show how to exactly the difference in recording them with cash vs. accrual basis accounting. Then we take a look at how these transactions impact the income statement. Check it out!


⏱️TIMESTAMPS

0:00 Intro
0:32 What is the Difference? - Cash vs. Accrual Basis
1:31 Transaction 1 - Cash Basis
3:13 Transaction 1 - Accrual Basis
5:02 Transaction 2 - Cash Basis
7:02 Transaction 2 - Accrual Basis
8:34 Transaction 3 - Cash Basis
10:27 Transaction 3 - Accrual Basis
12:55 Impact on Income Statement - Cash Basis
14:22 Impact on Income Statement - Accrual Basis
15:18 Summary and Outro


➡️ FREE Depreciation Cheat Sheet: http://bit.ly/depreciation-cheat-sheet
➡️ FREE Debits and Credits Workbook: http://bit.ly/dc-workbook1

Subscribe to the Channel for more Fast and Easy Accounting Tutorials: https://bit.ly/subscribe-au