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Accounting, as a source of information, can recognize the economic transactionstaking into account the time of payment or receipt thereof, as soon as they occur. There are twobasic models of accounting: accrual basis and cash basis. In the cash accounting method thetransactions are recorded only when cash is received or paid, shall not make the difference betweenthe purchase of an asset and the payment of expenditure - both of which are considered"payments". Accrual accounting achieves this distinction, as recognized accounting transactions assoon as they occur. At the same time, accrual accounting method ensure accurate submission oftransactions, but in order to determine cash flow is necessary to apply cash accounting method. Inthe cash basis, revenues and expenses are reported in the period in which the payment is made orthe income is received, whereas, and on the basis of accrual-based accounting method, income isexpressing the effect achieved with the effort called expenses. In order to research the opportunitiesof information provided by the two accounting models in this study - by applying a methodology ofresearch subscribed to the constructivist current and based on a vast practical experiences inaccounting activities that apply both models of accounting - we achieved a SWOT analysis withexposing the strengths and weaknesses of the two accounting models highlighting the convergenceand divergence between them.

"Comparative Study On Accounting Models ""cash"" And ""accrual"" "