Mike's Blog » cash based accounting http://www.brintech.net Gospel study notes and technical journal Sun, 01 Aug 2010 00:06:35 +0000 http://wordpress.org/?v=2.9.2 en hourly 1 Accounting Notes http://www.brintech.net/accounting-notes/ http://www.brintech.net/accounting-notes/#comments Sat, 23 May 2009 23:52:18 +0000 Mike http://www.brintech.net/?p=108 When using cash based accounting, you must assign payables to expense accounts and receivables to income accounts (income statement accounts). In accrual based accounting you assign payables to liability accounts and receivables to asset accounts (balance sheet accounts).

CASH BASED ACCOUNTING:

Payables => Expense Accounts
Receivables => Income Accounts

ACCRUAL BASED ACCOUNTING:

Payables => Liability Accounts
Receivables => Asset Accounts

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