Summary Question

ACC 290

Summary Question

Accounting systems vary from company to company. However, most companies depend on Generally Accepted Accounting Principles (GAAP). These principles keep every company using a standardized system of accounting. Therefore, if a financial institution or investor desires to see specific information about a company the financial officer will be able to read those books clearly.

Cash based accounting is a type of bookkeeping. However, most organizations use accrual basis accounting. Both account for cash flow in and out of the organization. But only one accounts for overlaps of accounts from month to month.

Cash basis accounting is used when an organization records all monies when the money is received. This also means that the organization...