A Comparison Between Cash Accounting and Accrual Accounting

A COMPARISON BETWEEN CASH ACCOUNTING AND ACCRUAL ACCOUNTING 1. Introduction Accounting principle and theory are generally referred to two main accounting methods which include cash accounting and accrual accounting. Cash basis accounting on income and cost is determined by the amount of actual payment for reference and accounting recording mode is simple, easy to master. The use of the accrual basis of accounting is more complicated than it with a main difference of recording timing. This essay will firstly separately discuss related conception and theory of cash and accrual accounting. Following this, it will explain the advantages and disadvantages of those two dealing method. Finally, it will offer two examples to describe†¦show more content†¦The business is continuous, accrual accounting can more accurately reflect actual financial situation and management performance during the specific business accounting period. Two parts shown as follows to describe the weakness of accrual accounting: Firstly, profitability aspect-the accrual basis gives a confirmation to some uncollected income. Such income is an imaginary number with some risks; Secondly, a portion of sales income in the currency can not be received and a confirmation is authorized in this situation, it will be having impact on taxation, distribution and many other aspects to result in bad chain reaction, thereby causing the financial deficiency and income distribution in advance; Furthermore, the accounting period calculation of profit does not have uniform standard for different accounting methods to select and the subjectivity is too strong, easily manipulated by the management authorities; Secondly, liquidity aspect-accrual accounting considers payment, deferred expenses, accounts receivable and inventory as current assets. Obviously, liquidity of those assets is poor, and this makes current assets liquidity enterprise off its real va lues. In the end,Show MoreRelatedAccrual Basis Vs. Cash Basis1737 Words   |  7 Pagestypes of accounting methods that most companies use, accrual basis or cash basis. A definition of both concepts and comparisons between the two methods will be discussed. In addition, it describes and examines the difference in the managing of those methods and which form of accounting method is more useful and beneficial to provide information to users for different purposes. In cash basis accounting, revenue is recorded only when the cash is received, and expenses are recorded only when cash is paidRead MoreAccrual Balance And Cash Flow Statement986 Words   |  4 PagesQuestion 1 I would explain these methods (accrual balance and cash flow statement), to Irene in this way: The most of the time the business bookkeeping system use two methods: the accrual basis or the cash basis (Gibson 2008). On one hand, â€Å"Accrual accounting is any record of revenues or expenditures when there is not a cash transaction. The principle to apply this method is the â€Å"matching principle†( Berman Knight, 2013), basically is the report of an expense or income statement in the equivalentRead MoreThe Differences and Similarties Between the Gasb and the Fasb752 Words   |  4 PagesGASB and the FASB. Two of the most exciting boards in the accounting world today. We will compare and contrast each of the boards to get a more in-depth look into how each of the boards operate. We will go thru their mission statements in order to get a sense of how they operate and what are their overall goals. Let’s get started! The FASB mission statement states, â€Å"that it is to establish and improve standards of financial accounting and reporting that foster financial reporting by nongovernmentalRead MoreSample Resume : Cash At Bank 90001205 Words   |  5 PagesAnswer 1: Current Assets $ $ Cash at bank 9,000 Accounts receivable 6,000 Inventory 15,000 Prepayments 1,000 _______ Total current assets 31,000 Non-current asset: Plant and machinery 26,000 Land and Building 50,000 Asset revaluation increment 20,000 Motor vehicles 18,000 _______ Total Non-current assets 114,000 _______ Total assets 145,000 ======= Current liabilities: Accounts payable 11,000 ______ TotalRead MoreAcc548 Week 5 Reporting Requirements Memo Essay1033 Words   |  5 PagesReporting Requirements Memo | Not-For-Profit and Government Accounting/ACC548 MEMORANDUM Date: ------------------------------------------------- To: CPA Senior Partner ------------------------------------------------- From: ------------------------------------------------- Subject: Reporting Requirements Read MoreAuditing Chap. 51176 Words   |  5 Pagesstatements produced under the cash basis of accounting cover cash receipts plus receivables within a specified period from the end of the period (complementary period); cash disbursements plus payables within a specified period from the end of the period (complementary period). Some countries that use the cash basis of accounting for their budget operations also produce financial statements under a modified accrual basis (e.g., France, Spain). The modified accrual basis of accounting (sometimes called â€Å"expenditureRead MoreBusiness Accounting Methods : Cash Vs. Accrual Essay1420 Words   |  6 PagesUsing the wrong accounting method There are two main business accounting methods: cash vs accrual. Cash accounting is the much simpler method and the method that most small start-up businesses will use because it is based on the actual flow of your cash in and out of the business. Cash basis accounting does a good job of tracking cash flow, but it does a poor job of matching revenues earned with money laid out for expenses. This deficiency is a problem, particularly when, as it often happensRead MoreThe Modern Business Environment1482 Words   |  6 PagesToday, Accounting is called â€Å"the language of business† because it is the source where all financial information comes from. However, Accounting is based on certain rules which all accountants must adhere. These rules are based on the Accounting standards and Accounting concepts. They form the framework and are the guidelines for good accounting practices. However, at times the accounting concepts may clash with each other due to conflicting objectives. 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Two laws, the Securities Act of 1933 and the Securities Exchange Act of 1934, give the SEC authority to establish reporting and disclosure requirements. However, the SEC usually operates in an oversight capacity, allowing the FASB

Graduate Study Challenges Strategies - 1408 Words

Graduate Study Challenges and Strategies for Personal Success Langa V. Gibson HCS/504 September 1, 2014 Janet Booker Introduction My name is Langa, and I have been a Registered Nurse since 2010. It has been my lifelong dream and passion to be a nurse. Initially, I felt just being a nurse would be satisfaction enough. A career, a profession that would allow me to help others, nature others, and help heal people. After graduating with my Associate’s degree in nursing, the reality of the real world set in when I realized, no hospitals would give me an opportunity to work. Having a two year degree was not enough. After a few months of searching for work, I was finally afforded two opportunities†¦show more content†¦They can be significant to a person’s self-esteem and confidence. The milestone that will mark the completion of my long term goal will be to put MSN behind my name, and to be able to take my career to the next level as an Educator. A milestone that will complete my short term goal is to know I have completed another project that takes me closer to my long term goal. Milestones represent positive steps towards the future and future goals. Communication can be a tricky subject and can go very right or very wrong. Some people can misinterpret the meaning of your words. That seems to be the case with me. Many people who don’t know me, don’t understand my personality and I come across as very direct. I try to use the 3 T’s method which consist of tone (how am I saying it?). The next is tools (what medium am I using to present information?) and last tactic which is the context in which I say it.(Ken Haycock, 2003, p.6) Many don’t get my jokes, because my personality is somewhat flat and dry. In personal communication, one of my weaknesses is that I tend not to communicate when I am having a problem or a disagreement with someone. I tend to hope the situation will resolve itself and that it will not have to be discussed. I know this is an ineffective way to handle miscommunications, but it is what I am used to. In â€Å"Communication amp; Listening† (2013), Dr. Jon warner suggestedShow MoreRelatedGraduate Study Challenges and Strategies for Success1707 Words   |  7 PagesGraduate Study Challenges and Strategies for Success Lea Smith HCS/504 February 28, 2011 Marilyn Ketchum Graduate Study Challenges and Strategies for Success Students face many challenges when pursing graduate studies. Setting goals for oneself is a good way to map out what they want to accomplish and also a way to help them overcome challenges when they occur. If a student takes the time to make a list of what challenges that may arise and how he or she will overcome those challenges, thisRead MoreGraduate Study Challenges and Strategies and Strategies for Personal Success1009 Words   |  5 Pagesï » ¿ Graduate Study Challenges and Strategies for Personal Success University of Phoenix Introduction to Graduate Studies in Health Science / Nursing HCS/504 03/3/2014 Instructor: Michelle Dorin By Gwendoria Buckles Graduate Study Challenges and Strategies for Personal Success Keeping your eyes on your personal goals and professional goals is key to staying focused and obtaining them in a timely fashion. 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It will explore my goals, the challenges and the strategiesRead MoreGraduate Study Challenges and Strategies for Success Essay864 Words   |  4 PagesRunning head: GRADUATE STUDY CHALLENGES AND STRATEGIES FOR SUCCESS Graduate Study Challenges and Strategies for Success Graduates Study Challenges and Strategies for Success Making my decision to go to graduate school through an online program was difficult. I had no idea what to expect. However, with my administrator’s advice and encouragement, I decided to start on this new endeavor and take the challenge. My only experience as a student has been the traditional classroom, which aloneRead MoreGraduate Study Challenges and Strategies for Personal Success1589 Words   |  7 Pagesand on top of things are the tools to excel and guarantee success in both professional and personal arenas. Pursuing a graduate study and improving communication skills are a few of many ways I chose to guarantee my personal and professional success. 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Introduction 2. Personal and professional goals 3. Reasons for pursuing graduate studies 4. Challenges 5. Strategies to overcome the challenges 6. Milestones 7. Analysis of strengths and weaknesses 8. Improving communication 9. Conclusion 10. References Introduction Graduate school enhances the opportunity for an individual to achieve his or her personal and professional goalsRead MoreMy Challenges and Strategies for Personal Success764 Words   |  4 PagesMy Challenges and Strategies for Personal Success Lydia Veluz Reyes HCS/504 Version 6 February 15, 2012 Mary Eacott My Challenges and Strategies for Personal Success in Graduate School Introduction Graduate study is indeed a huge challenge for me. I have been out of academic school for 38 years. I could imagine how other students are experiencing. Seeking further education, requires well planned directions and commitment. I believe these challenges will need strategies for my personalRead MoreGraduate Study Challenge Paper1128 Words   |  5 PagesGraduate Study Challenges and Strategies for Success Twenty one years ago I started my nursing profession, which I do not regret any minute of it. Today I found myself back to college embarking a new journey pursuing MSN degree with much excitement and many challenges. In order to be successful in graduate study, I have to come up with strategies to overcome the anticipated challenges. The three main obstacles I face that would affect my study are writing, time management, and stress. Reason

School Captain Speech free essay sample

Almost all of these school captain speeches sound the same. They start off with a quote, put in a couple of Jokes and try terribly hard to find the balance between inspiration and comedy. This will be no different. So what makes up a good captain speech? Basically Eve got to get up here, be serious, but not too serious, funny but not over the top and caring but not too caring, because really If I want to impress you, Eve got to figure out how to get up here, keep a smile n both my faces and yours, speak for three minutes and yet say nothing.I could do a rap Like captains past but who am I kidding I Alan no 360. The fact Is you may not care who the school captain Is! But at the end of the day you want somebody who can look good In photos and say 3 sentences In a row that make reasonable sense, dont you? But what does a school captain actually do? Stand up at assembly, repeatedly tell the school to remain standing after a dodgy rendition of the national anthem, and then ay in a fake voice that concludes todays assembly, please wait for your year coordinators. We will write a custom essay sample on School Captain Speech or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page I believe a school captain should be more than Just a fake voice over a loudspeaker, more than just a photo in a newsletter, I believe a school captain should feel a sense of pride in representing their school, in representing you. A great man once said leadership is action, not Just position. Im John Doe, thankful for listening.

Populism DBQ free essay sample

In the late nineteenth century, around 1880-1900, many farmers were experiencing problems and threats to their way of life. The valid complaints of the farmers dealt with the money supply system in America and the large railroad companies. In 1892, the platform for the Populist Party was laid down. In this platform it is stated that the national power to create money is appropriated to enrich bondholders thereby adding millions to the burdens of the people. This is discussing the demonstration of silver and the negative effect it has on the common people, such as farmers. Later on in the platform is it also discussed that silver has had widespread acceptance as a coin for a very long time and by demoralizing it to increase the purchasing power of gold, the results are several negative consequences which will eventually lead to terrible convulsions, the destruction of civilization, or the establishment Of an absolute despotism. We will write a custom essay sample on Populism DBQ or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page This unhappiness Of farmers regarding the money system in the United States is also shown in a political cartoon from The Farmers Voice, a Chicago newspaper in the late sasss or early sasss. The cartoon entitled The Eastern Master and His Western Slaves depicts farmers as slaves to the wealthy eastern businessmen. It is representing the exploitation of the farmers and shows yet another of their economic struggles; the mortgages they bore on their farms.Further evidence that supports and validates the farmers complaints about the current economic situation is found in William McKinley acceptance speech given in Canton, Ohio on August 26, 1896. In his speech, McKinley said that even though free silver would not make farming less laborious and more refutable. farmers and laborers are the ones who suffer the greatest as a result of the cheap money. They are the first to feel its bad effects and the last to recover from them . The belief that silver is the solution of the problems for farmers is opposed in J.Laurence Laughlin s Causes of Agricultural Unrest article in the November, 1896 issue of Atlantic Monthly. Laughlin describes that the increase in supply without an increase of demand led farmers to believe that silver can solve their issues by his saying, the Eden enlargement of the supply without any corresponding increase of demand produced that alarming fall in the price of wheat which has been made the farmers excuse for thinking that silver is the magic panacea for all his ills He then goes on to describe that farmers have simply pushed the blame on the scarcity of gold as opposed to realizing the actual cause is their own overproduction of wheat. The effects of the different acts and laws regarding money supply is shown in the United States government data from 961 depicting the population of the country along side the money in circulation from the year 1865 through 1895. This data shows that from 1865 through 1885, the population was increasing, however the amount of money in circulation was decreasing rapidly.This suggests that the effects Of the acts and laws regarding money we re resulting in the deflation of of the currency. Against the railroad companies is credible because during this time period the government showed enormous favoritism towards large businesses even Hough the railroads were monopolies. Further discontent with monopolies is expressed in A Call to Action: An Interpretation of the Great Uprising.Its Source and Causes by James 8. Weaver, a Populist candidate for president in the election of 1892. Weaver described that trusts and monopolies use threats, intimidation, bribery, fraud, wreck, and pillage to impoverish the producer, drive him to a single market, reduce the price of every class of labor connected with the trade, throw out of employment large numbers of people ND finally they increase the price to the consumer The farmers and laborers of the late nineteenth century faced two main problems; money supply and large businesses such as railroads. These issues resulted in a variety of complaints from the agriculturists, however the grievances did prove to be valid based on the evidence previously presented. The farmers were struggling to survive off of the small profit they received, and they suffered even further when large monopolies and railroad companies took actions that dwindled their profits further.