Cash vs Accrual Timing
Compare when fictional business revenues and expenses appear under cash-basis and accrual-basis accounting.
Accounting puzzle
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Instructions, device progress and accessibility
Choose Easy, Normal, or Hard and select Practice or UTC Daily. Solve all accounting fields, then Check Answer. Hint and Undo mark a round as assisted. Progress stays on this device. All cases are fictional.
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How to play Cash vs Accrual Timing
Compare when fictional business revenues and expenses appear under cash-basis and accrual-basis accounting. Choose Easy, Normal or Hard, enter the numeric answers and use Check Answer. Practice and daily challenges are free.
Worked accounting example
A $1,000 service earned but not collected counts as accrual revenue now, not cash-basis receipts. A $600 advance collected for next month counts as cash receipts now but is deferred under accrual accounting.
Accounting formulas and common mistakes
Cash basis recognises receipts and payments when cash changes hands. Accrual basis recognises revenue when earned and expenses when incurred, regardless of timing of cash settlement.
All fictional amounts use US dollars for illustration only. Exercises are educational, not business, tax or investment advice.
Frequently asked questions
When does accrual accounting recognize revenue?
When the business has earned the revenue, even when it has not yet collected payment.
Are customer deposits always current accrual revenue?
No. In this exercise money received for services not yet delivered is a liability and not accrual revenue for this period.