What Are the Two Types of Community Strings

question 47

Essay

What are the two types of community strings?

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Definitions:

Prepaid Item

An expense paid in advance before receiving the benefit of the service or good.

Accrued Liability

A financial obligation that a company has incurred but has not yet paid out or recorded in its financial statements.

Accrual Basis

An accounting method where income and expenses are recorded when they are earned or incurred, regardless of when the cash is received or paid.

Cash Basis

An accounting method where revenues and expenses are recorded only when cash is received or paid out.