What Is Accrual Accounting, and How Does It Work?
What Is Accrual Accounting, and How Does It Work?
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Introduction to Modern Accounting (Accrual Basis) at Accounts Classes by Karthick Balaraman In modern accounting, we use the accrual basis, which means that we record transactions when they occur, not when cash is exchanged. This method helps provide a clearer picture of a company’s financial performance by recognizing revenues and expenses in the period they relate to, even if the cash hasn’t been received or paid yet. Today, we’ll explore how different rent-related transactions are recorded un
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