to explain to a new employee the difference between the cash basis of accounting and the accrual basis. Mention the expenses are recorded under each method.

Employee

he student$)$

accounting regards all cash receipts as revenues and all cash payments as expenses. The hed and expenses as they are incurred, not when cash is received or paid. There is a difference in the timing of the re xpenses using the cash basis and the accrual basis.

revenues are recorded that is$,$ when the business

corded and liabilities created