The primary difference between accrual-basis and cash-basis accounting is:

Question

Quizplus · Accepted Answer

The primary difference between accrual-basis and cash-basis accounting is the timing of when revenues and expenses are recorded. In accrual accounting, revenues and expenses are recognized when they are earned or incurred, regardless of when cash is received or paid. In contrast, cash accounting only records revenues and expenses when cash is actually received or paid.

The Primary Difference Between Accrual-Basis and Cash-Basis Accounting Is