example cash vs accrual accounting / grammer and spelling
lonnie barnes have a sell car and yard business brought a used car in june for $1000.00 was hoping to sell for cash $2000.00 but he don’t not sell for the car unit the next month. tony paid $2000 cash for the car. it was the end of the month that meaning close of the book. mr barnes book show $1000.00 expense was not revenue that mean the he had a loss a profit for the month of june. but in july it show $2000.00 profit in actually he revenues of $1000.00 in the evening and on weeken he do yard work and sometime his older customer take time to pay him. he still record revenue on the completion of job even he haven’t not collected cash from his customer by this way he end up with more reveue.
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