How do you distinguish cash-based from accrual accounting?

• Cash basis recognizes revenue the moment it is earned, while accrual waits until the customer actually pays
• Accrual records revenue/expenses when earned or incurred; cash basis records them only when cash moves
• Under GAAP the two methods are treated as interchangeable, so a company may report on whichever it prefers
• Accrual recognizes revenue only when cash is received, and expenses only when bills are paid
• Accrual is used solely to prepare the tax return, while cash basis is what appears in the audited statements