All I need to know on basis of accounting.
Understand the Problem
The question is asking for information about the basis of accounting, which refers to the methods and principles used to record and report financial transactions. This could include discussions on cash basis, accrual basis, and their implications for financial reporting.
Answer
The basis of accounting refers to when transactions are recognized and reported.
The basis of accounting refers to the timing of when transactions and financial activities are recognized and reported in financial statements. The two main types are cash basis accounting and accrual basis accounting.
Answer for screen readers
The basis of accounting refers to the timing of when transactions and financial activities are recognized and reported in financial statements. The two main types are cash basis accounting and accrual basis accounting.
More Information
Cash basis accounting records transactions when cash changes hands, while accrual basis accounting recognizes revenues and expenses when they are incurred, regardless of cash flow.
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