Different Between Accrual and Cash Basis Profit

1

Hi!

I am having trouble figuring out that why my accrual basis account is showing loss and cash basis account is showing the profit. Also, there is a difference in total sale amount between accrual basis and cash basis.

The total sale shown in inventory profit margin statement also differs from the total sales shown in the summary page.

Can someone please help.

2

You need to consult a basic accounting text or web site to learn about how these accounting methods differ. Try accountincoach.com.