what is the difference between cash accounting and accrual accounting 
the primary distinction between cash and accrual accounting is in the timing of when expenses and revenues are recognized with cash accounting this occurs only when money is received for goods or services accrual accounting instead allows for a lag between payment and product e g with purchases made on credit who needs to make adjusting journal entries companies that use accrual accounting and find themselves in a position where one accounting period transitions to the next must see if any open transactions exist if so adjusting journal entries must be made accordingly 