Write a business memo to a new bookkeeper to explain the difference between the cash basis of accounting and the accrual basis. Mention the roles of the recognition criteria for revenues and the matching objective in accrual-basis accounting.
This is the format of a business memo:
Date:..............(fill in)
To:.................New Bookkeeper
From:..............Student Name)
Subject:...........Difference between the cash basis of accounting and the accrual basis of accounting