Cash Versus Accrual Accounting
Author: Robert K Minniti
| CPE Credit: |
2 hours for CPAs |
This online course provides a clear and practical introduction to cash-basis and accrual-basis accounting—the two fundamental methods that drive financial reporting and business decision-making. Whether supporting small businesses, advising clients, or strengthening internal accounting knowledge, professionals must understand when each method applies, how revenue and expenses are recognized, and how financial results differ under each approach.
In this course, participants will explore the key accounting principles that govern each method, including the revenue recognition and matching principles. Real-world transaction examples help illustrate how timing differences occur and why method selection matters for tax reporting, compliance, and strategic planning. By the end of the course, attendees will feel confident identifying, applying, and explaining the differences between cash and accrual accounting, enabling them to better support clients, colleagues, and organizational goals.
Publication Date: January 2026
Designed For
This course is ideal for professionals seeking a foundational yet practical understanding of cash and accrual accounting.
Topics Covered
- Overview of cash-basis accounting and key characteristics
- Overview of accrual-basis accounting and key characteristics
- Revenue recognition and the matching principle
- Comparison of transaction treatment under cash vs. accrual methods
- Considerations for selecting the appropriate accounting method
Learning Objectives
- Differentiate between cash-basis and accrual-basis accounting and the implications of each
- Apply the revenue recognition principle when determining income reporting timing
- Apply the matching principle to properly align expenses with related revenues
- Analyze simple accounting transactions to determine proper treatment under each accounting method
- Identify when cash-basis or accrual-basis accounting may be required or advantageous in practice
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Accounting (2 hours)
Program Prerequisites
None
Advance Preparation
None
