There are two basis of accounting: cash basis and accrual basis. Personal finance often focuses on the cash basis, whereas corporate accounting focuses on the accrual basis, as prescribed by U.S. Generally Accepted Accounting Principles (GAAP). Furthermore, tax filers focus on the modified accrual basis.

If you were about to select the basis of accounting for your organization, which basis would you select, and why?

Select two of your classmates' posts, and respond to one of the following:

• Do you agree with the basis of accounting selected by your classmate?
• What other basis of accounting could be used?