I need help in accounting and a trading company

Accounting
Tutor: None Selected Time limit: 1 Day

Your like to start a trading company in your country and hire you as accounting profession to make some important decisions such as using cash or accrual basis accounting, how often will financial statements be preparedwhen will the business record
Dec 15th, 2015

Thank you for the opportunity to help you with your question!

Under the cash basis accounting revenues are often recorded on the financial statements in the period in which the cash is received from customers whereas expenses are recorded when the cash is paid out. On the other hand under accrual basis revenues from customers are recorded when they are earned  while expenses are recorded in the financial statements in the period in which they occurred or when they expired which is often different from the period in which payment occurred. 


Please let me know if you need any clarification. I'm always happy to answer your questions.
Dec 15th, 2015

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