In my accounting class we are being asked to comment on posts that other students make. I need help with a response/post to the comment that is below. Any help you can give me would be appreciated. I also MUST include a reference with my comment so if you could include a reference that would be so helpful! THANK YOU!

When it comes to recording cash and accrual basis transactions, they are both very important n account but there are a few differences regarding how they are being recorded. Cash basis type of transactions are recorded immediately. In this case, the cash method is mostly used by small businesses and for personal finances. (Morah, 2020). Overall, cash basis type transactions are not record until cash is received.

On the other hand, the accrual basis of accounting is more geared towards transactions that are supposed to be paid by the customer once the product or service is received. I think for my own personal analogy, it operates on the same lines of how we see credit-based transactions where the cash is received later instead of immediately. Simply put, expenses of goods and services are recorded despite no cash being paid out yet for those expenses. (Morah, 2020). This method of accounting is more used by larger type companies.

Although, both type of transactions is equally as important, the cash basis however is much easier to record than the accrual basis.