What is the difference between cash and accrual accounting?

I found some good informative links for you, and I have
included them below.

Both cash and accrual accounting are
ways of keeping track of how many money a company has.  Basically, the main difference
is when you record a transaction.

Cash accounting means
that you don’t record income until you actually have the cash in your hand.  Let’s say
you open a lemonade stand.  You keep a ledger and record every time someone buys a
drink.  They buy the drink and hand you the money.  You put the money in a jar and
record the cash in the ledger.  Since you always do both at the same time, the amount of
money in the ledger should match the money in the jar.  If someone promises to buy a cup
from you tomorrow, you don’t record it in the ledger because you don’t have any money
for the jar.  You may or may not give the person the lemonade, but you probably will
not.

Accrual accounting is when you record a transaction
before you actually get the cash in hand.  Let’s say the person who promises to pay you
for the lemonade tomorrow is a cute boy you’ve had your eye on.  You give him the
lemonade to get on his good side.  You gave out the lemonade, so for accounting purposes
you have to record the transaction somewhere.  So you mark in the ledger, with a note
that you don’t have the money yet.  Now the money in the jar does not match the ledger,
but tomorrow it will.  Hopefully 

Both cash and accrual
accounting are ways of keeping track of how many money a company has.  Basically, the
main difference is when you record a transaction.

Cash
accounting means that you don’t record income until you actually have the cash in your
hand.  Let’s say you open a lemonade stand.  You keep a ledger and record every time
someone buys a drink.  They buy the drink and hand you the money.  You put the money in
a jar and record the cash in the ledger.  Since you always do both at the same time, the
amount of money in the ledger should match the money in the jar.  If someone promises to
buy a cup from you tomorrow, you don’t record it in the ledger because you don’t have
any money for the jar.  You may or may not give the person the lemonade, but you
probably will not.

Accrual accounting is when you record a
transaction before you actually get the cash in hand.  Let’s say the person who promises
to pay you for the lemonade tomorrow is a cute boy you’ve had your eye on.  You give him
the lemonade to get on his good side.  You gave out the lemonade, so for accounting
purposes you have to record the transaction somewhere.  So you mark in the ledger, with
a note that you don’t have the money yet.  Now the money in the jar does not match the
ledger, but tomorrow it will.  Hopefully