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	Accounting methods - Wikipedia, the free encyclopedia
		It is the accounting method used by most individuals, and by some businesses that have limited payables or receivables or whose income and expense cash flows are closely associated with each other in time.
		Using accrual-basis accounting, receivables and payables are recognized when a sale is agreed to, even though as yet, no cash has been received or paid out.
		For tax purposes, cash basis accounting is highly favored because it defers tax burdens until the cash is received.
	en.wikipedia.org /wiki/Accrual_basis_accounting (959 words)

	Cash-basis versus accrual-basis accounting - Encyclopedia.WorldSearch (Site not responding. Last check: 2007-10-11)
		But using accrual-basis accounting, receivables are debited and payables are credited (and, for tax purposes, a profit or loss is thereby determined), even though as yet, no cash has been received or paid out.
		From the perspectives of creditors and stockholders, cash basis accounting is financially inadequate in that it does not allow one to forecast adequately the future income and cash flow of the company.
		For tax purposes, cash basis accounting is highly favored by companies because it defers tax burdens until the cash is received.
	encyclopedia.worldsearch.com /accrual_basis_accounting.htm (836 words)

	1.Financial Accounting and Reporting
		Basis of accounting is a term used to refer to revenues, expenditures, expenses, and transfers and their related assets and liabilities that are recognized in the accounts and reported in the financial statements.
		Thus, under modified accrual basis of accounting, then, amounts are recognized as revenue when earned, only so long as they are collectible within the period or soon enough afterwards to be used to pay liabilities of the current period.
		The measurement focus hinges on whether the primary objective of accounting is to reflect the sources and uses of financial resources which necessitates the use of revenues and expenditures, or whether the primary objective is to allocate costs to periods benefited which necessitates the use of revenues and expenses.
	www.tea.state.tx.us /school.finance/audit/resguide9/far/far-07.html (744 words)

	cash-basis versus accrual-basis accounting (Site not responding. Last check: 2007-10-11)
		Companies that have extended or used credit more expansively will use (and in the United States may be required by the Internal Revenue Service to use) the accrual-basis method of accounting.
		Using cash-basis accounting, income and expenses are credited and debited only when cash is received or paid out.
		On the other hand, a remodeling business that gives customers 90 days to pay and that procures materials on account at the lumber yard, must use the accrual method to gain an accurate picture of its financial condition.
	www.yourencyclopedia.net /Cash-basis_versus_accrual-basis_accounting.html (394 words)

	Cash vs. Accrual Accounting (Site not responding. Last check: 2007-10-11)
		Under the accrual method, transactions are counted when the order is made, the item is delivered, or the services occur, regardless of when the money for them (receivables) is actually received or paid.
		While the accrual method shows the ebb and flow of business income and debts more accurately, it may leave you in the dark as to what cash reserves are available, which could result in a serious cash flow problem.
		Under her accrual system of accounting, she counts the $400 expense in the December 2004 accounting period, even though she didn't actually write the check until January of the next year.
	www.nolo.com /encyclopedia/articles/sb/cash.html (1194 words)

	Accrual Accounting Procedures (Site not responding. Last check: 2007-10-11)
		The accrual basis of accounting is guided by the principle that says the revenue earned by a business must match all the expenses incurred to generate that revenue.
		Accrual accounting procedures will ensure that your financial information about the business's performance is accurate.
		Individuals who require knowledge of the basics of accounting, who are starting a business, who are learning to manage the accounting activities of a business, or who need to review standard accounting principles and procedures.
	content1.skillsoft.com /content/cm/FIN0122000000/summary.htm (337 words)

	A&R PPM filing 4,030 - Basis of Accounting (Site not responding. Last check: 2007-10-11)
		A fund’s basis of accounting refers to when revenues, expenditures, expenses and transfers – and the related assets and liabilities – are recognized in the accounts and reported in the financial statements.
		While cash basis accounting may be necessary for legal compliance, it does not facilitate accurate reporting of financial position and is considered inappropriate for reporting the financial position of any fund.
		Modified Accrual Basis accounting recognizes an economic transaction or event as revenues in the operating statement when the revenues are both measurable and available to liquidate liabilities of the current period.
	da.state.ks.us /ar/ppm/ppm04030.htm (584 words)

	Accrual basis accounting (Site not responding. Last check: 2007-10-11)
		Financial Report of the United States Government Provides summary information on Federal Government operations and financial positions on an accrual basis from the Financial Management Service of the Department of Treasury.
		Accounting WEB Accounting software news, accounting career information, and accounting firm management resources.
		Ted Elliott and Associates Specializes in the placement of finance and accounting professionals on a permanent basis.
	www.serebella.com /encyclopedia/article-Accrual_basis_accounting.html (343 words)

	Introduction to Accounting: A User Perspective Chapter 6 -- Multiple Choice
		is used with accrual basis accounting but never with cash basis accounting.
		accrual basis accounting reports the reality of performance on the statement of cash flows.
		accrual basis accounting reports the reality of performance on the income statement.
	cwx.prenhall.com /bookbind/pubbooks/jones/chapter6/multiple1/deluxe-content.html (554 words)

	Accrual Basis Accounting 01
		Under the accrual basis accounting, revenues and expenses are recognized as follows:
		There are potential timing differences in recognizing revenues and expenses between accrual basis and cash basis accounting.
		If a company uses accrual basis accounting, there are four cases where revenue and expense recognition may not coincide with cash transactions.
	www.accountinginfo.com /study/accrual-01.htm (513 words)

	EZ Accounting
		This is a partial list of the accounting terms that will be available to you after becoming a paid user.
		Accrual basis of accounting is based upon generally accepted accounting principles.
		Accrual basis of accounting includes accounts receivable, accounts payable, and inventory.
	www.ezaccounting.com /term-sample-profit.asp (129 words)

	Cash basis versus accrual basis accounting (Site not responding. Last check: 2007-10-11)
		It is the accounting method used by most individuals, and by some businesses that have limited payables or receivablesor whose income and expense cash flows are closely associated with each other in time.
		But usingaccrual-basis accounting, receivables are debited and payables are credited (and, for tax purposes, a profit or loss is therebydetermined), even though as yet, no cash has been received or paid out.
		On the other hand, aremodeling business that gives customers 90 days to pay and that procures materials on account at the lumber yard, must use theaccrual method to gain an accurate picture of its financial condition.
	www.therfcc.org /cash-basis-versus-accrual-basis-accounting-9993.html (348 words)

	SLAC - Accounting Review - Accrual and Cash Basis Accounting (Site not responding. Last check: 2007-10-11)
		In accrual basis of accounting is based on the matching principle, which says that revenue is recorded when it is earned (not when the money actually comes in) and expenses is recorded when they are incurred (not when they are paid).
		Companies often choose the accrual basis because they want to show earned revenue along with the expenses that were incurred to earn that revenue.
		In cash basis of accounting, revenue is recorded when cash is received and expenses are recorded when they are paid.
	www.accd.edu /SAC/slac/ppointshows/acct/accrual_cash_basis.htm (150 words)

	Measuring with Government Accounting Standards (Site not responding. Last check: 2007-10-11)
		Government-wide financial statements prepared using the accrual basis of accounting and economic resources measurement focus, in addition to traditional fund financial statements, are required by GASB 34.
		Since account groups are self-balancing, as are funds, a debit entry was made in the account group to recognize the amount to be provided for repayment of the debt.
		Modified accrual basis of accounting continues to be used for all transactions reported in governmental funds.
	www.tncpa.org /Journal/articles/measuringGASB34.htm (2422 words)

	Document (Site not responding. Last check: 2007-10-11)
		These account groups are the only mechanism for reporting long-lived assets and long-term debt on the financial statements for funds using the modified accrual basis of accounting.
		Recognition of some revenues and expenditures under the modified accrual will often be in a different time period than the recognition of revenues and expenses using the full accrual basis required for the government-- wide statements.
		Accounting entities are not reporting entities, therefore no financial statements are prepared nor are they fiscal entities, and no receipts or expenditures are recorded.
	arapaho.nsuok.edu /~yeutter/3353/Handout.htm (3154 words)

	Cash-basis versus accrual-basis accounting (Site not responding. Last check: 2007-10-11)
		It is accounting method used by most individuals and some businesses that have limited payables or or whose income and expense cash flows closely associated with each other in time.
		Accrual-basis accounting records financial events based on that change your net worth (the amount owed to you less amount you owe others).
		But using accrual-basis accounting receivables debited and payables are credited (and for purposes a profit or loss is thereby even though as yet no cash has received or paid out.
	www.freeglossary.com /Cash-basis_versus_accrual-basis_accounting (504 words)

	Cash Flow: Basis of Accounting
		Under the cash basis of accounting, a business records revenue only when cash is received and records expenses only when cash is disbursed or paid.
		The accrual basis of accounting is generally used by larger businesses and by those businesses that are capital-intensive, such as construction contractors and manufacturers.
		The accrual basis of accounting is required to be used by all businesses that carry inventory to give a more accurate financial picture of the business.
	www.prairiepublic.org /features/END/cashflow3.htm (536 words)

	[No title] (Site not responding. Last check: 2007-10-11)
		Accrual Basis: The basic difference between cash & accrual is one of timing (when revenues and expenses get recorded.) III.
		ACCRUAL BASIS (Preferred method) The accrual basis of accounting tells us when to record revenues and when to record expenses.
		Because Accrual Accounting is based on timing and not when cash is received or paid, it will require Adjusting Entries at the end of every accounting period in order to update all revenues (if now earned) and all expenses (if now "used up").
	acct.tamu.edu /barrett/CHAPTERS/229CH4-99a.doc (758 words)

	accrual basis accounting and Stock Trading at TradeStars + Stock Trading (Site not responding. Last check: 2007-10-11)
		accrual basis accounting and stock trading - fantastic savings on accrual basis accounting with no questions asked with plenty of chutzpah.
		accrual basis accounting is up for grabs free.
		In direct opposition to this you may have come across individuals who appear paranoid, claiming that accrual basis accounting the markets are rigged by the big boys or even that the July 10, 2000.
	www.tradestars.com /content/accrual-basis-accounting.asp (121 words)

	What is the Difference Between Cash-Basis and Accrual-Basis Accounting?
		Cash-basis and accrual-basis accounting use different criteria for determining when to recognize and record revenue and expenses in your financial records.
		In accrual-basis accounting, income is realized in the accounting period in which it is earned (e.g., once contracted services are provided, grant provisions are met, etc.), regardless of when the cash from these fees and donations is received.
		Record small transactions (e.g., under $100) on a cash basis, but larger transactions and withheld payroll taxes are recorded on an accrual basis.
	www.labyrinthinc.com /SharedContent/SingleFaq.asp?faqid=35 (904 words)

	CCH Business Owner's Toolkit \| Cash vs. Accrual Accounting
		With the accrual method, you record income when the sale occurs, whether it be the delivery of a product or the rendering of a service on your part, regardless of when you get paid.
		For example, if you make a sale on account (or, on credit), you would record the transaction at the time of the sale, with an entry to the receivables account.
		You probably need to keep a record of accounts receivable and accounts payable anyway, so you are already keeping track of all the information needed to do your books on the accrual basis.
	www.toolkit.cch.com /text/P06_1340.asp (619 words)

	The problem with Cash Basis accounting (Site not responding. Last check: 2007-10-11)
		On Accrual Basis financial statements, expenses appear when they are incurred but before they are paid.
		In Cash Basis accounting systems, expenses do not appear on the financial statements until they have been paid.
		Tax wise, Cash Basis accounting systems create a situation that, for some businesses, leads to bankruptcy while, at the same time, reports the company is making a profit.
	www.aniota.com /~jwhite/cbasis.html (335 words)

	Accrual Basis Household Accounting
		Unlike the cash-basis approach to income and expense statements, not all money received is counted as income when the accrual basis is used.
		The logic of the definition of income for accrual-basis household accounting is quite simple: if you receive money or other items of value with no future obligation for repayment, and not in repayment of a past loan you made, it should be counted as income.
		G=unrealized increase in investment and housing asset values, plus contributions to retirement accounts that were not counted as income, e.g., employer match to a 401(k) retirement account.
	www.hec.ohio-state.edu /people/shanna/660/Ch7Note2_4.htm (1563 words)

	accrual basis accounting Definition
		The most commonly used accounting method, which reports income when earned and expenses when incurred, as opposed to cash basis accounting, which reports income when received and expenses when paid.
		Under the accrual method, companies do have some discretion as to when income and expenses are recognized, but there are rules governing the recognition.
		In addition, companies are required to make prudent estimates against revenues that are recorded but may not be received, called a bad debt expense.
	www.investorwords.com /61/accrual_basis_accounting.html (205 words)

	Year-End Adjustments - Cash Basis and Accrual Basis (Site not responding. Last check: 2007-10-11)
		There are two basic accounting methods that will determine when income and expenses are recognised and used to determine the profit or loss of a business.
		Once you have selected to use the cash or the accrual basis, you need to be consistent with the selected method for tax purposes.
		If you are using the accrual-basis accounting method, you need to make certain adjustments to correct your income and expenses to reflect the actual income and expenses for the accounting period or financial year.
	www.turbocash.co.za /HelpEng/YearEndAdjustmentsCashBasisandAccrualBasis.htm (389 words)

	[No title] (Site not responding. Last check: 2007-10-11)
		Under the modified accrual basis of accounting, revenues must be "susceptible to accrual" in order to be accrued.
		Under the accrual basis of accounting, revenue should be recognized in the period in which it is earned and becomes measurable.
		Accordingly, each fiscal year end, an accrual should be made to recognize revenue for all payroll and personal income taxes assessed as of June 30 and estimated to be received on or before September 30 of the same year.
	www.oregon.gov /DAS/SCD/SARS/policies/oam/OAM_outforcomment/15.35.00.PR.doc (3695 words)

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