Basic Accounting - Basis Of Accounting

Basic Accounting - Basis Of Accounting:
Accounts are recorded on various basis. But the prominent 2 basis on which accounts are recorded are : 1) Cash basis and 2) Accrual basis.
In cash basis, income is recorded when cash is actually received and expenses are recorded when they are actually paid. But, in Accrual basis, income is recorded when it is earned and expenses are recorded when they are due. In this video detailed and logical explanation is given about the two “Basis Of Accounting”.