There are two methods used to account for transactions. These methods are:

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The two methods used to account for transactions are cash and accrual. The cash method records transactions when the actual exchange of cash occurs, while the accrual method records transactions when they occur, regardless of when the cash is exchanged. Both methods have their advantages and disadvantages, but the accrual method is generally considered the more accurate reflection of a company's financial situation.

There Are Two Methods Used to Account for Transactions