Question

Name any two bases of recording accounting information.

Answer 1

1. Cash Basis: The actual amount of cash received and cash paid is recorded in this. Any kind of income received and expenditure paid will be entered in this.

2. Accrual or Mercantile Basis: The income which is not received but has been earned or accrued and the expenses incurred, which is paid and not recorded, is known as Accrual or Mercantile Basis.