What is the difference between accrual accounting and cash basis accounting?

Question

ObjectiveMcq · Accepted Answer

Accrual accounting recognizes revenues and expenses when they are earned or incurred, regardless of when cash is received or paid

ObjectiveMcq · Answer

Cash basis accounting 1 recognizes revenues and expenses when cash is received or paid

ObjectiveMcq · Answer

Accrual accounting focuses on cash flows, while cash basis accounting focuses on profits

ObjectiveMcq · Answer

Accrual accounting is used for tax purposes, while cash basis accounting is used for financial reporting