Differentiate between cashbasis and accrual-basis accounting

Reference no: EM131454765

DISCUSSION BOARD: Cash Basis vs. Accrual Basis Accounting

Differentiate between cash-basis accounting and accrual-basis accounting. Why is accrual-basis accounting the preferred method for most businesses? The Internal Revenue Service requires all companies with sales over $5,000,000 to use the accrual-basis of accounting for income tax reporting purposes. Why?

Reference no: EM131454765

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