What is the difference between cash and accrual basis of accounting?How does this affect the Deferral of Income and Acceleration of Expenses
Cash Basis- follows the flow of cash so expenses are deductible when paid and income is reportable when constructively received. Accrual Basis – matches revenue and expenses as expenses are deductible when incurred and revenues are reportable when earned even if not received. Accrual basis businesses: Ultimately the basis of accounting influences when income and…