Cash Basis or Accrual Basis? | Accounting How To | How to Pass Accounting Class

Cash Basis or Accrual Basis? | Accounting How To is an accounting tutorial explaining the differences between cash basis and accrual basis accounting methods. It answers the question "what is accrual accounting?" It discusses the when it makes sense to use accrual basis vs cash basis. This is an accounting tutorial for accounting students, business owners, and bookkeepers to explain accounting basics for beginners. Featuring Terrance the T-Account Rex and accounting educator, Caroline Grimm, this accounting tutorial is part of a playlist series called Understanding Journal Entries. ⏰ Accounting How To Time Stamps: 00:00 Introduction to Cash Basis and Accrual Basis 01:07 Introduction to Generally Accepted Accounting Principles (GAAP) 01:36 Revenue (and Expense) Recognition 01:54 Matching Principle 02:07 Example of Cash vs Accrual Basis 03:04 Revenue and Expense Recognition 03:14 Cash Basis Accounting Method 03:43 Accrual Basis Accounting Method 04:00 Is Cash Basis Better Than Accrual Basis? 04:51 Cash Flow vs Profitability 04:57 Who Can Use Cash Method? 05:55 Example of Differences in Financial Statements 11:40 Different Accounts Used in Accrual Basis Accounting 11:48 Introduction to Adjusting Journal Entries