Why Cash Accounting is MISLEADING!! Accrual vs. Cash Accounting Explained

Cash Accounting is an over-simplified method of Accounting and often used by small businesses. The proper GAAP-accepted method is the Accrual Accounting. In this video we dive into an example business, examine its transactions, record the journal entries, and then see the IMPACT Cash Accounting has on the presentation of the Income Statement as proof it’s a misleading method of Accounting.

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[FeverByte]

I am greatly impressed by your way of clearing concept theoretically and practically as well

[stevejones]

Love this channel. Only found it a few weeks back and learn more here than I ever did doing my AAT 👍

[carmelmichee]

Thank you Bill, your videos are so useful and your explanations so clear.

[victoriousjay]

This was so helpful and understandable!

[dailenimercedescontrerathe]

Thank you for the video; I learned much about those two accounting methods. Could you please let me know the differences between cash basis and modified cash basis accounting method?

[hackit]

Bill i finally bought your course. Im looking forward to unpacking it and learnig from it. Thanks for making accounting fun again. Thanks Kesh 🇬🇧

[crwest]

GREAT explanation and video. I learned something new today. Truly appreciate this video.

[chrisfenika]

Thank you for simplifying this for me.

[Lejeng-cksp]

very detailed and informative.. thank you so much.

[jaimee]

I have watched almost all of your videos. Good instructional video. Can you please make a video with multiple accrual entries and the reversal of them? Thanks.

[saddestdayever]

As an accounting major, these are so helpful!

[education]

Awesome,
please post a video regarding significance and calculation of beneish m score .
Can it be used by investors ?

[JordanJimenezGonzalez]

Very well explained, thank you very much sir.

[e_nixma]

Thank you so much for the video! Can a franchisee use a cash basis accounting method? Thank you.

[raidenxx]

This is awesome, thanks! would you also do a video where you Map GAAP to Balance sheet and cash flow?

[BGB]

Can you do a video on what to expect with a brand new Associates degree in accounting. I saw the one on bachelor's and it was awesome but I feel like Alot of people can't afford an bachelor's right away and are going AA first. With only my degree in hand and no experience should I just be aiming for clerk jobs? That seem to only pay about 17 ish an hour

[goharayub]

How about casinos? Do they use cash accounting or accural accounting. If there are working online? Just curious to know. I am a fresh graduate in accounting and finance.
You are videos are really helping as i am looking for my first ever job too

[evansjuma]

Many thanks Bill, The video clearly expound of the differences between the two accounting methods. Glad to see that the cash accounting violates the ''matching principle''. Great work man!
I would greatly appreciate if you can take us through the stock provision in the financial statements, the relevance of the same in the books, and provision methods that a manufacturing firm and retail business can adopt.

Many thanks brother!

[reds.]

I had two accounting interview, they asked this question.

[ansatsu]

Hey Bill I am Senior accountant at a retail company for 4 years (did 2 in governmental auditing before, left after getting CPA). I do GL accounting, so everything besides AP/AR, FA and inventory. I want to find a new job, senior or manager (any industry) but am nervous about my experience (or rather lack of). Do you have any advice? Currently going through all your videos. Thanks