What is the main difference between cash and accrual accounting?

Understanding Cash and Accrual Accounting

Interactive Video
•
Business
•
9th - 12th Grade
•
Hard

Emma Peterson
FREE Resource
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10 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Accrual accounting records transactions only at the end of the year.
Cash accounting records transactions when cash is exchanged.
Accrual accounting records transactions when cash is exchanged.
Cash accounting records transactions when they are agreed upon.
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
In cash basis accounting, when is revenue recognized?
At the end of the fiscal year.
When the cash is received.
When the invoice is sent.
When the service is performed.
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
During Month 1, what was the profit after catering an event costing $100 and receiving $200?
$150
$100
$200
$50
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
In Month 2, why was there a negative profit recorded?
Expenses were higher than revenue received.
The customer paid in advance.
The customer paid less than expected.
The event was canceled.
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What was the cash balance at the end of Month 2?
$100
$200
$0
-$100
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
In Month 3, how much revenue was recorded from the previous month's customer?
$200
$400
$800
$600
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What was the profit in Month 3 when no catering was done?
$600
$400
$800
$200
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