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. Cash-basis accounting records revenues and expenses when cash is received or paid out, while accrual-basis accounting records revenues and expenses when they are earned or incurred, regardless of when cash is received or paid. This difference can have significant impacts on financial statements and decision-making.

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