Table of Contents
Accrual basis of accounting | Finance \u0026 Capital Markets | Khan Academy
นอกจากการดูบทความนี้แล้ว คุณยังสามารถดูข้อมูลที่เป็นประโยชน์อื่นๆ อีกมากมายที่เราให้ไว้ที่นี่: ดูเพิ่มเติม
Simple example of accrual accounting. Created by Sal Khan.
Watch the next lesson:
https://www.khanacademy.org/economicsfinancedomain/corefinance/accountingandfinancialstateme/cashaccrualaccounting/v/comparingaccrualandcashaccounting?utm_source=YT\u0026utm_medium=Desc\u0026utm_campaign=financeandcapitalmarkets
Missed the previous lesson? Watch here: https://www.khanacademy.org/economicsfinancedomain/corefinance/accountingandfinancialstateme/cashaccrualaccounting/v/cashaccounting?utm_source=YT\u0026utm_medium=Desc\u0026utm_campaign=financeandcapitalmarkets
Finance and capital markets on Khan Academy: In exchange for being treated as a personlikelegal entity (and the limited liability this gives for its owners), most corporations pay taxes. This tutorial focuses on what corporations are, \”double taxation\” and a few ways that multinationals might try to get out of paying taxes.
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Cash vs Accrual Accounting Explained With A Story
There are 2 different accounting methods: Cash Accounting and Accrual Accounting. In this video I will show you the difference between accrual basis versus cash basis of accounting by telling you a story. You will get a quick overview how each of these methods impacts the timing of recording a company’s transactions.
In Cash Accounting companies record transactions only when cash is exchanged. This means that revenue is recorded only when cash is received. And expenses are recorded only when cash is paid. Therefore, this method is intuitive and simple to understand. It helps you keep track of your cash balance, easy to apply, and an accepted accounting method also for tax purposes. Cash accounting method can be your accounting method of choice especially if your business is small and simple, and mainly cash based. On the other hand, cash accounting may not provide a full picture of the business at a certain point in time.
In Accrual Accounting companies record transactions when they happen rather than when cash changes hands. Revenue is recorded when earned, meaning when a sale is made and the products or services are delivered to the customer. Even if the customer hasn’t paid yet. Expenses are recorded when incurred regardless even if they’ve not been paid to the supplier yet. Accrual Accounting provides a much better picture of what is happening in a business. If the company reports under GAAP or IFRS then Accrual Accounting is the accepted method. However, it does not focus on cash flows which is why reported income under this method does not equal cashin.
00:56 What is Cash Accounting
02:38 Accrual Accounting Explained
03:27 Cash and Accrual Accounting explained with a Story
09:13 Advantages and Disadvantages for both methods
Check out the full article here: https://www.xelplus.com/cashvsaccrualaccounting
In the next video of our accounting basics series, we’ll take a look at the Cash Flow Statement.
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Accounting
Accrual Basis Accounting Definition -What is Accrual Basis Accounting?
Accrual basis accounting definition including break down of areas in the definition. Analyzing the definition of key term often provides more insight about concepts. The term accrual basis accounting can be defined as: Accounting system that recognizes revenues when earned and expenses when incurred; the basis of GAAP. The term accrual basis accounting is the core accounting concept and method used by most businesses and in most textbooks and the accrual method is the method of GAAP. The accrual method can be contrasted against the cash method, the accrual method recognizing revenue when earned and expenses when incurred, the cash method recognizing revenue and expense when cash is received and paid. The accrual method is more accurate in that it pinpoints the point when revenue was earned and when expenses incurred.
Why Learn Accounting Financial Accounting / Managerial Accounting
https://youtu.be/uaWDB1YdA1k?list=PL60SIT917rv52SlrB3FFn2WMyZEkj6uBI
101 Double Entry Accounting System Explained Accounting Equation
https://youtu.be/66e9QbrkE4g?list=PL60SIT917rv52SlrB3FFn2WMyZEkj6uBI
101 Cash vs Accrual Cash Method / Accrual method differenc
https://youtu.be/i2O0cexCrqc?list=PL60SIT917rv52SlrB3FFn2WMyZEkj6uBI
101 Revenue Recognition Principle
https://youtu.be/M_pauBGz5Jc?list=PL60SIT917rv52SlrB3FFn2WMyZEkj6uBI
Double Entry Accounting System Explained Balance Sheet
https://youtu.be/kOItl8E3fNA?list=PL60SIT917rv52SlrB3FFn2WMyZEkj6uBI
101 Income Statement Introduction
https://youtu.be/1k11H8icQxc?list=PL60SIT917rv52SlrB3FFn2WMyZEkj6uBI
101 Accounting Objectives Relevance Reliability Comparability
https://youtu.be/mO8tPzFmN8o?list=PL60SIT917rv52SlrB3FFn2WMyZEkj6uBI
101 Transaction Rules Accounting Equation
https://youtu.be/0vy6W_WTO2I?list=PL60SIT917rv52SlrB3FFn2WMyZEkj6uBI
101 Transaction Throught Process / Steps Accounting Equation
https://youtu.be/SlTo3EXDuqU?list=PL60SIT917rv52SlrB3FFn2WMyZEkj6uBI
101 Owner Deposits Cash Transaction Accounting Equation
https://youtu.be/lPZoImc88eU?list=PL60SIT917rv52SlrB3FFn2WMyZEkj6uBI
101 Work Completed for Cash Transaction Accounting Equation
https://youtu.be/ll5xIHVdrVs?list=PL60SIT917rv52SlrB3FFn2WMyZEkj6uBI
100.110 Pay Employee with Cash Transaction Accounting Equati
https://youtu.be/bSa3NuVpkwc?list=PL60SIT917rv52SlrB3FFn2WMyZEkj6uBI
200 Debits \u0026 Credits Normal Balance Double Entry Accounting Sy
https://youtu.be/alSWKuWPlxU?list=PL60SIT917rv52SlrB3FFn2WMyZEkj6uBI
200 Debits \u0026 Credits One Rule to Rule Them All
https://youtu.be/RL3BFjL1eyE?list=PL60SIT917rv52SlrB3FFn2WMyZEkj6uBI
Understand how to enter Accruals \u0026 Prepayments transactions using the Double Entry System
Understand how to enter Accruals/Prepayments of Revenue and Expenses into ‘T’ accounts using the double entry system. By watching this video you will be shown how to enter Amounts Owing and Due into the General Ledger ‘T’ Accounts. If you would like to download the Handout on how to enter Accruals and Prepayments transactions into ‘T’ accounts using the double entry system then please visit our Website at http://www.igcseaccounts.com/.
Financial Accounting 101: Accruals and Deferrals – Accrual Accounting – Made Easy
This is the lesson that helped me to understand deferrals and accruals. Think of Deferrals as ‘Dollars before Action’ and Accruals as ‘Action before Dollars.’
Deferred Expense Asset: Prepaid Expense
Think of this as an expense where we paid Dollars before the Action of incurring the expense. Our vendors owe us, this is an asset.
Deferred Revenue Liability: Unearned Revenue
Think of this as revenues that we accepted Dollars before the Action of earning them. We owe our customers, this is a liability.
Accrued Expense Liability: Account Payable
Think of this as a time when the Action of incurring an expense came before the Dollars we need to pay. We owe our vendors money, this is a liability.
Accrued Revenues Asset: Account Receivable
Think of this as the Action of earning the revenues came before receiving the Dollars we need to collect. Our customers owe us money, this is an asset.
นอกจากการดูหัวข้อนี้แล้ว คุณยังสามารถเข้าถึงบทวิจารณ์ดีๆ อื่นๆ อีกมากมายได้ที่นี่: ดูบทความเพิ่มเติมในหมวดหมู่BUSINESS & INVESTMENT tại đây
