Interview Question

Associate Accountant Interview

-Phoenix, AZ

CBRE

The recruiter always asks: tell me what the difference is between cash and accrual accounting, but the interviewer has no knowledge of acounting so it's pointless getting into detail.

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Interview Answers

4 Answers

2

The difference between accrual and cash basis accounting is in the timing of when revenue and expenses are recognized. The cash method is more immediate recognition and accrual method focuses on anticipated revenue

Anonymous on

2

The difference between cash and accrual is cash you paid immediately cash for items acquired. Accrual means you set up transactions as a contract debiting receivable and credited liability accruing cost and recognized expense or revenue when you bill customer or collect money.

Cynthia Dutch on

0

Also it's keeping track of what price it was

Kate on

0

Cash method is not part of GAAP probably would've sufficed

bob on

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