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CASH AND ACCRUAL BASIS OF ACCOUNTING CONCEPTSCASH BASISACCRUAL BASISGAAPX?IncomeRecognize as soon as received despite whenearnedRecognized the moment attained no matter whenreceivedExpenseRecognized once paid out no matter whenincurredRecognized once incurred No matter ofwhen earnedSalesOnly acknowledge as soon as payment is receivedCash SalesxxCollection of Cr. SalesxxTotal salesxxSales is equals to cash gross sales + credit rating salesCash salesxxCredit SalesxxTotal salesxxPurchaseIncludes only cash buy and thepayment of credit rating purchasesCash purchasexxPayment of cash purchasexxTotal purchasexxIncludes cash product sales and all credit history purchasesCash purchasexxCredit purchasexxTotal purchasexxIncome other thansalesIncome receivedxxDeferred cash flow includedGained although not nevertheless gainedAdvance paymentsAccrued profits not integratedAcquired although not however receivedIncome earnedxxAccrued profits integratedAcquired not nonetheless receivedDeferred revenue not bundledReceived not nevertheless earnedExpenses other thandepreciation anddoubtful accountexpenseExpenses paidPrepaid fees integratedPaid out not still incurredAccrued expenses excluded
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