Cash basis vs Accrual basis

Revenue recognition Cash Basis or Accrual Basis We will be comparing and contrasting the cash basis accounting versus accrual basis accounting. What are these accounting systems? These are two different types of accounting methods by which a company can maintain their records. How does a company know which one of these methods to use? Well […]

Closing Entries

Let's talk about why do we close the books. The best analogy is one that I read years back in a textbook it was a sports analogy and I'm going to paraphrase that to help us understand this closing process a little better. Let's assume that the Yankees and the Orioles two baseball professional teams are playing each other.