CASH BASIS Accounting ACCRUAL BASIS Accounting ACCRUAL vs CASH BASIS Accounting Check mark the right box. That fits description When are revenues earned? When are expenses earned? Which method uses Prepaid assets? Which method uses Unearned revenue? How is Income calculated? Which method complies with GAAP? Which method causes more fluctuations when reporting income? Which method reflects cash flow changes? Used by big corporations? Used by small service businesses