Health Plan Name Institution Health Plan Q1 The accrual and cash basis accounting tools are employed to prepare financial statements in hospitals. The two approaches have got some differences. The significant difference between accrual and cash financial basis is recognized in the timing in which the revenue and expenses are acknowledged (Tennyson, Nirtaut, & McSweeney, 2010). The accrual method is got by both the cash at hand and those to be received in future while cash focuses on the immediate acknowledgment of what is there at present. In the cash basis, the income statement is only reported when money has been received at hand. It also only records the money not paid instantly after...
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