So one of the main purposes of accounting for anything of making these accounthing statements in first place is so that you can reflect wnat's going on in the business and that might be for investors to see how business is doing or it might be for the managers of a business so that they can see where the business is doing well, or where it's not doing well, or maybe how resources should be allocated. So let's see ewhich of these two methods of accounting the cash method or the accrual metgod. Giveabetter indication of what's actuaily going on in the business and the way i did it in the first two videos for each month, this first column right over here, this is the cash basis of accounting.and this right here is the accrual.so the second column is the accrual. Let's just look at the income statement we're assuming a very simple world where there's no taxes. We have no dedt. Wejust literaily have revenue,some expenses associated with that reveue and just asimple profit