Cash vs Accrual Accounting Explained With A Story

Dive into the world of accounting methods! This video provides an in-depth comparison between cash and accrual accounting, helping you understand their impact on business financials.

Key Concepts Explored:
▪️ Cash Accounting: Discover the simplicity of the cash-based system and its focus on actual cash transactions.
▪️ Accrual Accounting: Learn how accrual accounting provides a more comprehensive view by recognizing revenue when earned and expenses when incurred.

In-Depth Analysis:
▪️ Timing of Revenue & Expense Recognition: Understand the critical timing differences in recording transactions.
▪️ Case Study Illustration: Follow Claudio's souvenir business example to see how each method affects real-life business scenarios.
▪️ Advantages & Disadvantages: Weigh the pros and cons of each method for different business sizes and types.

Why Income & Cash Flow Differ: Grasp why reported income and actual cash can be vastly different, and why understanding both is crucial for financial health.

🔍 GAAP & IFRS Reporting Standards: Learn about the Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS) compliance in accounting methods.

00:00 Accrual Accounting vs. Cash Basis Accounting
00:56 What is Cash Accounting
02:38 Accrual Accounting Explained
03:27 Cash and Accrual Accounting explained with a Story
09:13 Advantages and Disadvantages for both methods

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#Accounting

[hornetcapitalfund]

I appreciate the slow and well-detailed video. The story helps a bunch for the visual type learners. Great Job!

[meatballer]

these online classes have been kicking my butt, thank you for the help!

[ferenkehkoroma]

Your deserved my respect Leila for simplify this old time concept. The accrual basis will not be in line with taxation principles.

[yours.trustworthy]

Simple yet thorough explanation to this confusing topic. Thanks a ton.
I think, you work in team... you can introduce teammates sometime.
Keep up this Great Work !!!

[axolilekopman]

Wow, I wish I watched this when I was still doing my degree Leila, this was so simple, concise, and very informative.

[oliviahope]

This is SO helpful. Love that you tell a story with it - I will always remember now :)) Thank you!

[mariostudio]

I love the accounting videos! 😊 Very well explained with simple and easy-to-understand examples!

[anthonykellerman]

Thank you for this video, Really helped with my accounting class. I understand concepts but I like to know the why of things and you broke that down perfectly for me.

[erwin]

I have an exam midterm for accounting tomorrow, this was really helpful. Our class accounting book from my professor explains these methods too deeply and I lose focus therefore never learning properly. This video made the concepts easy and intuitive. Just subscribed, going to be watching more videos here.

[danielschmidt]

Awesome videos. My Accounting class at the University had been difficult but not so much now because of your videos. Thank you soooo much! Dan Schmidt, Oshkosh, Wisconsin.

[pacificreef]

Thank you Leila for your explanation, You are very understandable and easier for me to absorb the topic. I hope you put more videos/lectures on accounting and business law as I am preparing for CPA Board exam.

[darkshinigami]

Great job Leila, I can't wait for the next video :D

[razehal-shawea]

I just started working in a bank, over a month give or take.... This actually helped me a lot. thanks Leila. BTW, your name is so lovely.

[derinsider]

@Leila..Many thanks. You explained a complex concept in plain English, making it easy to understand.😊

[ITB]

I appreciate the simplicity and detailed video. Thank you.

[ShWBOA]

I really like how you explained all of that. Hope you can produce more videos like this🥺. It would really help accountancy students🥰🥰

[seymagulnihalyildiz]

you are the BEST TEACHER! everything great about this video, content, your style of telling, graphics, with this way its fun to understand, thank you <3

[yonatanteshome]

I have an exam in 2 hers and this vid helped me better understand the concept, thanks

[carsonhertler]

Great channel! I'll keep coming back as I continue studying accounting.

[Duc]

I really enjoy learning the basic accounting concepts presented in this video and other videos that you had posted. Your presentation is very clear, precise, and easy to follow. On top of that your graceful mannerism and your voice are very pleasantly heard and watched. Thank You for making these great videos.