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What's the difference between Accrual accounting AND Cash accounting? Which one is used more by firms?

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Question added by Mojtaba Al Alsaied Nasser , General Accountant , Tanmia for Oil and Construction Ltd
Date Posted: 2015/04/14

The basic difference comes n timing. Accrual accounting books the expenses and revenues for a period whereas cash based accounting books these on actual cash receipt / paid basis. Thus, in accrual concept, we need to book the JEs for expected expn for the period for which we do the accounting. This is not the case in cash accounting.

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