TASC Accounting Level 3 Practice Questions - TASC Accounting Level 3 Examination (ACC315116) Exam

Accrual accounting recognizes revenue when goods or services are provided (earned), whereas cash accounting recognizes revenue only when cash is received. Accrual accounting recognizes revenue only when cash is deposited into the bank, whereas cash accounting recognizes revenue when an invoice is issued. Accrual accounting ignores unearned revenue, whereas cash accounting records unearned revenue as a current asset. Accrual accounting is used exclusively for non-profit entities, whereas cash accounting is required for all public companies.