ACC 290 Week Four Individual Paper

Week Four Individual Paper

ACC/290

Week Four Individual Paper

The current reading supports that commercial accounting and generally accepted accounting principles, strongly advise the accrual basis of accounting versus the cash basis of accounting. The accrual basis of accounting confirms that when transactions alter a business's financial statements they are recorded during the period that the events happened, regardless if there was an exchange of cash or not. An example of the accrual basis would be businesses who recognize revenues earned, regardless if cash was received or not. The accrual basis also recognize when expenses are incurred, even if cash was not paid. The other potential option to the accrual basis is the cash basis. The major...