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Acc 290 Week 1 Individual Assignment

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Acc 290 Week 1 Individual Assignment
Individual Summary Question One
ACC-290
March 3rd 2014
Individual Summary Question One
It is commonly known that most commercial and general accounting principles use accrual based accounting over cash based accounting. Accrual based accounting is more advanced than cash based accounting so that is why most accountants chose this over the latter.
Cash based accounting is when revenues are recognized when cash is received and when expenses are recognized when cash is paid. Cash based accounting is not in accordance with the general accepted accounting principles (GAAP).
Accrual based accounting is when transactions are recorded at the times in which the events occur. The revenues are recognized when they are earned and not
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