Video

  • 38 minutes

Cash vs. Accrual Method

 
Cash vs. accrual accounting – first goods and services are provided for a fee. Then you match that with the cost that’s used to provide those goods and services. That is called the accrual basis of accounting. There are two bases – cash and accrual. In most cases accrual basis is used so you can record transactions as they occur. Revenue when it is earned, when the goods and services are provided and you have earned the right to that revenue, needs to be matched with the cost that has occurred. With cash basis revenue isn’t recorded until the cash is received and expenses aren’t recorded until cash is paid. Most companies use the accrual basis, however some smaller companies use cash basis.

In this 37-minute video our speaker, Carl L. Young, MBA, also reviews ratio categories including profitability, efficiency, liquidity, solvency and cash.

Carl L. Young, MBA is Mr. Simplicity. He is an author, and former Chief Financial Officer (CFO) of a $275M high growth company; a business owner (CEO) of C Young Consulting LLC; a consultant; a business coach; a passionate, and entertaining speaker and trainer; a scholar in the Gersen Lehrman Council of Experts; and a member of the Standard and Poors Society of Industry Leaders. Mr. Young is a highly trained accountant with more than 25 years of speaking and training experience. He has presented seminars both nationally and internationally on finance, accounting, payroll and inventory.

Runtime: 37 minutes

Faculty

Carl L. Young, MBA

Carl L. Young, MBA

C Young Consulting LLC