Tag: cash

When a business collects cash from a customer, it is typically recorded as revenue in the financial statements. However, there are situations when cash collected from the customer is not recorded as revenue. This can happen for various reasons, such as when the business has not fulfilled its performance obligations or when there is uncertainty…

Accrual bookkeeping and cash accounting are two different methods used to record financial transactions in a business. The primary difference between the two is the timing of when revenue and expenses are recorded. In cash accounting, revenue and expenses are recorded when cash is received or paid out, while in accrual bookkeeping, revenue and expenses…