Can you explain the difference between accrual accounting and cash accounting?”
Caste-based selection in government exams is a hot topic. On one hand, I see how it helps people from marginalized communities who have faced discrimination for a long time. This system gives them a fair chance to get government jobs and improve their lives. However, I also feel that this isn't fairRead more
Caste-based selection in government exams is a hot topic. On one hand, I see how it helps people from marginalized communities who have faced discrimination for a long time. This system gives them a fair chance to get government jobs and improve their lives.
However, I also feel that this isn’t fair to deserving candidates who don’t fall under the reserved categories. Jobs should be given based on merit and hard work, not caste. Everyone should have an equal chance to compete, and the best person should get the job, no matter their background.
But I also understand that not everyone starts from the same place. People from marginalized communities often don’t have access to the same quality education and resources. Without some support, it’s tough for them to compete on an equal footing.
The real challenge is to balance fairness and merit. I think we need to keep working towards giving everyone, regardless of caste, access to good education and opportunities. Until then, caste-based selection is a complicated but necessary step to ensure inclusivity and fairness in government jobs.
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The main difference in accrual based accounting and cash based accounting is in the timing of when revenues and expenses are recognized. In accrual based accounting, revenues and expenses are recorded when they are incurred, and before the cash transaction happens. This method follows the matching cRead more
The main difference in accrual based accounting and cash based accounting is in the timing of when revenues and expenses are recognized.
In accrual based accounting, revenues and expenses are recorded when they are incurred, and before the cash transaction happens. This method follows the matching concept, which ensures that the revenues and their expenses are recorded in the books of accounts in the financial period. Accrual accounting provides an accuracy of a company’s financial position and performance because it involves accounts receivable and accounts payable. For example, if a company delivers goods in December but receives payment in January, the revenue is recorded in December under accrual accounting.
In Cash based accounting, revenues and expenses are recognized only when the cash is actually received or paid. It is simpler and often used by sole proprietorship and individuals because it gives a clear view of cash flow. For example, Under cash accounting, the revenue would be recorded in January when the payment is received, not when the goods were delivered.
Both the methods have their own pros and are chosen to their specific needs and requirements of the business.
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