Andy Smith is a Certified Financial Planner (CFP®), licensed realtor and educator with over 35 years of diverse financial management experience. He is an expert on personal finance, corporate ...

There are two different methods of accounting for cash inflow and outflow. They are: Profitable companies can fail to adequately manage cash flow, which is why the cash flow statement is important ...

so it would be counted as June revenue using the accrual accounting method. If Acme Adhesives instead used cash-based accounting, they would record this revenue when payment was received on July ...

Private companies also have the option to use the cash accounting method. In a practical sense, the main objective of financial accounting is to accurately prepare a business' financial accounts ...

Accrual accounting is the preferred approach for companies reporting their financial statements under generally accepted accounting practices (GAAP), which are issued through the standards of the ...