The major difference between cash and accrual basis accounting lies in when the expenses and revenues are recorded or recognized. The cash basis method accounts for revenues when money is actually received regardless of when the invoice was issued. Expenses on the cash basis accounting method are recorded when they are paid out and not when they were invoiced. The cash basis method is mostly used for personal finances and

The balance sheet presents the three elements of financial position namely, assets, liabilities and equity. The balance sheet highlights the accounting equation which provides: Assets = Liabilities + Equity. In a balance sheet presentation, assets and liabilities are further classified into current and non-current to distinguish those used directly for operations as to those for long-term usage. An income statement is a formal statement prepared for a given period

Accounting This discussion contains research pertaining to the impact of cash-basis accounting on the distortion of the financial position and operating results of a business. We began our discussion with a definition of cash base analysis. We concluded that this accounting tactic is used to examine cash and cash equivalents. This is done by separating cash flow transaction into one of three activities which include; operating, financing and investing activities. Our investigation then

Accounting Practices Depending on the type and size of a particular health care facility, the generally accepted accounting principles (GAAP) used to conduct medical accounting can vary greatly, and these differences may have significant impact on the eventual delivery of medical services. According to the Financial Accounting Standards Board's (FASB) Accounting Standards Codification, which is "the source of authoritative generally accepted accounting principles (GAAP) recognized by the FASB to be

Accounting Methods and Taxpayer Income Depending on the type and size of company you own, the methods used to conduct your business accounting can vary greatly, and these differences may have significant impact on the eventual amount of income declared to the Internal Revenue Service when you file taxes. Sole proprietors and small business owners who have not fully incorporated typically rely on cash-basis accounting, which is the "major accounting method

Leadership & Responsibility Chapter 27 covers the principal tax requirements for not-for-profit entities. There are several issues that affect not-for-profits, including tax status, filing requirements, state tax reporting issues, donor-advised funds and restrictions. Every organization needs to pass a test to become a charitable organization-based for tax purposes. This is to ensure that only charitable ventures receive tax exempt status, to avoid having for-profit entities defraud the American people. Private foundations