Comparing accrual and cash accounting | Finance & Capital Markets | Khan Academy

Comparing Accrual and Cash Accounting. Created by Sal Khan.

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Finance and capital markets on Khan Academy: In exchange for being treated as a person-like-legal entity (and the limited liability this gives for its owners), most corporations pay taxes. This tutorial focuses on what corporations are, "double taxation" and a few ways that multinationals might try to get out of paying taxes.

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[boeinglr]

feel so powerful after knowing all this accounting.

[catcat]

Got a test for this in an hour. Notes were confusing but this was fantastic. Keep up the great work!

[benderbendingrofriguez]

How happy everybody would be when Holly Wood creates a movie where they show some real accounting.

[muslimah]

omg my dad was JUST trying to explain this to me yesterday. I've been afraid that I might like Accounting, and you make it seem pretty interesting. Thanks for all the great work you're doing Mr.Khan. Always inspiring. :)

[jaredblack]

Very helpful in explaining the key differences in the two accounting methods, thank you so much.

[mckenziestewart]

I just got to your video in my accounting course and hearing your voice eased all my worries! I loved your videos in a pervious course and I've been so lost on this course but this has been so clear. I'm hoping I can find more videos you've done on what I've already learned in accounting to help clear it up for me! Thank you so much for these videos!

[FMAStudent]

@SainterX me taking the C.F.A. level one exam with my study habits! that's the giggle.

[sohaibahmed]

Wait assets you don't owe liabilties you owe for future. Assets is what you own

[yanettebw]

**Why In the 2nd month you have to say Accrual method that you have $400, if that amount says that is going to be paid on the Next Month ??
**And in the 3rd month you don't put the $200 you will get as a revenue the Next month?

[kevinshi]

isnt it the accrual in month three the cash should be ＄300？

[kevinshi]

nvm I got it regardless of which method, the cash will always be the same

[robjennings]

I thought I was listening to Reggie Miller breaking this down.

[joshf]

Hey I love this video like @rayandtaytoday