Cash and Accrual accounting - Revenue recognition.



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Hi, please i do not understand the concept of accrual accounting in terms of revenue recognition.. please can i get a better understanding.. this because the video is really freezing i do not seem to be getting the explanations well.

1 Answer(s)


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cash system is a system of revenue recognition when transactions are recorded in the books when you actually receive cash....may be at the time of transaction or in future when you receive if you sell on credit......but accrual system is the one in which you record the transaction in ur book as soon as the transaction takes place......not considering the time of receipt of cash