Book chapter
Numbers You Need to Know
The Complete Business Guide for a Successful Medical Practice, pp.97-106
Springer International Publishing
10/25/2014
DOI: 10.1007/978-3-319-11095-0_8
Abstract
The two primary methods of reporting income and expenses in accounting are the cash accounting and accrual accounting methods. In cash accounting, revenue is recorded when cash is received, and expenses are recorded when they are paid in cash. Cash accounting is generally used in smaller businesses with average gross receipts of $5 million or less over the prior three fiscal years. One of the advantages of cash accounting is that it accurately reflects cash on hand. A disadvantage of this method of accounting is that it might not accurately reflect the health of a business. As an example, if a large number of bills were paid in a given month, it might appear that the business was doing quite well when this just might represent chance.
Details
- Title: Subtitle
- Numbers You Need to Know
- Creators
- Karl J. Kreder - University of Iowa
- Resource Type
- Book chapter
- Publication Details
- The Complete Business Guide for a Successful Medical Practice, pp.97-106
- Publisher
- Springer International Publishing; Cham
- DOI
- 10.1007/978-3-319-11095-0_8
- Language
- English
- Date published
- 10/25/2014
- Academic Unit
- Obstetrics and Gynecology; Urology
- Record Identifier
- 9984384735702771
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