Accrual Accounting

๐‘๐ž๐ฏ๐ž๐ง๐ฎ๐ž ๐‘๐ž๐œ๐จ๐ ๐ง๐ข๐ญ๐ข๐จ๐ง ๐๐ซ๐ข๐ง๐œ๐ข๐ฉ๐ฅ๐ž

๐‹๐ž๐š๐ซ๐ง ๐‘๐ž๐ฏ๐ž๐ง๐ฎ๐ž ๐‘๐ž๐œ๐จ๐ ๐ง๐ข๐ญ๐ข๐จ๐ง ๐๐ซ๐ข๐ง๐œ๐ข๐ฉ๐ฅ๐ž ๐ˆ๐ง ๐Ÿ’ ๐Œ๐ข๐ง๐ฎ๐ญ๐ž๐ฌ

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Under the revenue recognition principle, revenue is recognized when itโ€™s earned, not when cash is received.

Modified Accrual Accounting

๐–๐ก๐ฒ ๐Œ๐จ๐๐ข๐Ÿ๐ข๐ž๐ ๐€๐œ๐œ๐ซ๐ฎ๐š๐ฅ ๐€๐œ๐œ๐จ๐ฎ๐ง๐ญ๐ข๐ง๐ ? ๐ƒ๐ž๐ญ๐š๐ข๐ฅ๐ž๐ ๐„๐ฑ๐ฉ๐ฅ๐š๐ง๐š๐ญ๐ข๐จ๐ง.

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Modified accrual accounting recognizes revenues only when measurable and available. And recognize expenses when they incur.

Asset Impairment

๐–๐ก๐š๐ญ ๐ˆ๐ฌ ๐€๐ง ๐€๐ฌ๐ฌ๐ž๐ญ ๐ˆ๐ฆ๐ฉ๐š๐ข๐ซ๐ฆ๐ž๐ง๐ญ? ๐€๐ง๐ ๐‡๐จ๐ฐ ๐“๐จ ๐‚๐š๐ฅ๐œ๐ฎ๐ฅ๐š๐ญ๐ž ๐ˆ๐ญ?

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When an asset losses its value or there is a reduction in its market value, this reduction in value is referred to as Asset Impairment.

cash basis vs accrual basis accounting

๐’๐ก๐จ๐ฎ๐ฅ๐ ๐ˆ ๐ฎ๐ฌ๐ž ๐œ๐š๐ฌ๐ก-๐›๐š๐ฌ๐ข๐ฌ ๐จ๐ซ ๐š๐œ๐œ๐ซ๐ฎ๐š๐ฅ ๐š๐œ๐œ๐จ๐ฎ๐ง๐ญ๐ข๐ง๐ ?

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Cash basis vs accrual basis accounting? Ahh! Confusing- what are they? Why and how Cash basis accounting is different from accrual basis accounting? Which is the most appropriate accounting method- cash accounting or Accrual Accounting? Looking for the answers to these complicated questions? Then you are at the right place. After reading this article you …

๐’๐ก๐จ๐ฎ๐ฅ๐ ๐ˆ ๐ฎ๐ฌ๐ž ๐œ๐š๐ฌ๐ก-๐›๐š๐ฌ๐ข๐ฌ ๐จ๐ซ ๐š๐œ๐œ๐ซ๐ฎ๐š๐ฅ ๐š๐œ๐œ๐จ๐ฎ๐ง๐ญ๐ข๐ง๐ ? Read More »

Accrual Accounting

๐€๐œ๐œ๐ซ๐ฎ๐š๐ฅ ๐€๐œ๐œ๐จ๐ฎ๐ง๐ญ๐ข๐ง๐ - ๐„๐ฑ๐ฉ๐ฅ๐š๐ข๐ง๐ž๐ ๐“๐ฒ๐ฉ๐ž๐ฌ ๐จ๐Ÿ ๐€๐œ๐œ๐ซ๐ฎ๐š๐ฅ๐ฌ

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Accrual accounting is an accounting method that records revenues and expenses when they incur- same accounting period.