Cash and Accrual Basis Accounting (Keeping Two Sets of Books Could be a Good Thing)

Understanding the method of accounting when looking at financial statements is important to determine the profitability of a company. There are many different methods of accounting, but the two most common are the Cash Basis Method and the Accrual Basis Method.

A Peer-Reviewed Publication Written by Richard C. Capasso, CPA, PFS, CFP

Abstract

Understanding the method of accounting when looking at financial statements is important to determine the profitability of a company. There are many different methods of accounting, but the two most common are the Cash Basis Method and the Accrual Basis Method.

This course will give you a general understanding of both the Cash Basis Method and Accrual Basis Method of accounting, and when to use one method over another and why.

Educational Objectives

At the conclusion of this educational activity participants will be able to:

1. Describe the Cash Basis Method of Accounting.

2. Describe the Accrual Basis Method of Accounting.

3. Identify Cash Basis and Accrual Basis financial statements.

4. Determine when to use these two different methods of accounting for practice management.

To view this course in its entirety, please click here

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