Question

How do you convert cash to accrual basis?

Answer 1

The following steps are required to convert from cash to accrual basis:

1. Add all accrued expenses
2. Subtract all cash payments
3. Add all prepaid expenses
4. Add accounts receivable
5. Subtract all cash receipts
6. Subtract customer prepayments

Also read:

• Difference Between Cash Basis and Accrual Basis of Accounting
• Accrual Basis of Accounting
• GAAP Generally Accepted Accounting Principles
• Difference Between GAAP and IFRS

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