You must use the APUS library to research this topic and post a reference at the end of your initial post.
Answer the following questions.
What are the differences between cash and accrual basis accounting?
Explain the major differences between the 2 methods.
Compose ONE transaction example of a business transaction that involves performing a service and then collecting the cash at a later date. I suggest you construct a revenue transaction where the sale in one month and the receipt of cash in the next month. Describe your transaction in detail including the date of the revenue was earned and the date the cash was collected.
Your example must be recorded differently under the 2 methods.
Use Journal entries with dates and amounts to show when and how the traction would be recorded Under the cash basis of accounting.
Use Journal entries with dates and amounts to show when and how the traction would be recorded Under the accrual basis accounting.
This is the format you need to use. Do your entries in excel and copy into your post.
| 1 | 7/1/2022 | Debit account goes here | 111 | Debit amount | ||||
| Credit account goes here | 311 | Credit amount |
Discussion Guidelines
Our discussions can be very stimulating and interesting if everyone will take a few minutes to really read through the posts and replies submitted by me and your classmates. Think through your discussion. Don’t just say “I agree” and “good job.” Instead relay personal experiences that are relevant to the topic of discussion or ask questions and make statements regarding what you thought of while reading the various posts. While I may make comments as replies to a specific student or to the class in general, all students are invited to reply to any posts that I submit. I love to see how you all think out of the box. Please join the discussions each week.
Students must post a reply to each weekly discussion and reply to at least 2 other students for each Discussion. Replies must be posted in the week due and replies after the end of each week will not be graded. The Discussions are for student interaction and input should be submitted before the week ends in order to fully participate in the discussions. Students should demonstrate their own knowledge in the discussions and avoid copying and pasting from websites.
- Post the initial response to each discussion by 11:59 PM, ET, Wednesday.
- Initial responses should have extensive words.
- Initial responses are to be original in content and demonstrate a thorough analysis of the topic.
- Reply to at least 2 of your classmates in each discussion by 11:59 PM, ET, Sunday.
- Replies to classmates should include direct questions.
- Responses to classmates are significant to advance the discussion.
- All discussions can be accessed in the Discussions section of the course