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- There are two types of basic accounting methods; Cash Base Accounting vs. Accrual Base Accounting. Discuss the differences between each of these methods. Please provide the different accounting treatments (i.e. journal entries) of the following transaction for both Cash Base Accounting vs. Accrual Base Accounting:
Example: You are an accountant for a landscaping company (Grantham Landscaping LLC) and have mowed a large park for the local county government. You charge the client $2,000 for the job. The county agrees to pay you 6 months from the date of the service.
We are all used to the conveniences that come with modern banking. We not only can pay our bills online but can have some paid automatically every month from our account. We can get our checking account balances on a daily basis. With all the automated banking processes that are available today, why do you think that bank reconciliation is necessary?