[DocJ]

To convert from cash to accrual, you basically need to add and subtract some assets and liabilities. These are the steps I have written down:

1 – What is your starting point? If you’re given Net Income, then you’re starting positive. If it’s Expenses, then it’s negative.

2 – Break down which items you’re given as Assets or Liabilities.

3 – ASSETS = Add increases and subtract decreases.

4 – LIABILITIES = Add decreases and subtract increases.

5 – The end result is your accrual basis.

6 – If you’re asked to go from accrual to cash basis, simply reverse it:

ASSETS = Subtract increases and add decreases.

LIABILITIES = Subtract decreases and add increases.

Accrual is gonna be the death of my score, man…

[AndreA]

I like to use formula:
Assets = Cash + Other Assets
Cash = Equity + Liability – Other Assets

Worked well for me or if you really want to understand details, then use journal entries.

FAR - 73, 78 (WileyCPAexcel 3,000+ MCQs, 50 SIMs)
AUD - 73, 81 (WileyCPAexcel 3,000+ MCQs, 40 SIMs)
BEC - 71, 71, 74, 84 (WileyCPAexcel 3,000+ MCQs, 10 SIMs)
REG - 84 (WileyCPAexcel 2,000 MCQs, 15 SIMs)

CA Ethics Exam - 94%

NEVER GIVE UP.

[Author]

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