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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Talent and Attitude should always go hand in hand. A person with good attitude will always flourish in whatever in does. TALENT : It may give individuals an advantage and allows them to excel in their chosen field with relative ease, but it a positive attitude - characterized by resilience, willingnRead more
Talent and Attitude should always go hand in hand. A person with good attitude will always flourish in whatever in does.
TALENT : It may give individuals an advantage and allows them to excel in their chosen field with relative ease, but it a positive attitude – characterized by resilience, willingness to learn, and strong work ethic that often determines sustained success. Talent alone may not be enough. Today in this competitive world dedication, skills and right attitude matters. If not talent can stagnate and go unrecognized.
ATTITUDE : Individuals with good attitude often are likely to embrace challenges, seek continuous improvement, and work effectively with others, which can help them overcome obstacles and adapt to changing circumstances. This will also help them to initiate a growth in their career. Good attitude will help to indulge in many activities with your peers , and this might showcase in your talent. one of the cons which I can mention is that a positive attitude alone may not compensate for a lack of fundamental skills or knowledge in certain technical and specialized arears.
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