Here is a preview of the article you requested. Please login to view the entire article.
Accrual and cash are the two most common methods of maintaining the books and
records of your business. If your business is a sizeable company, your lenders
or investors may require you to use the accrual method.
The accrual
method requires that you record business activity when it occurs not necessarily
when money changes hands as in the cash basis. For example, if your business
provides entertainers for children’s birthday parties, under the cash method you
would record income only when you receive the cash. Under the accrual method,
you would record income when the work that you were contracted