Which accounting method can show total sales even if payment is not received in the same year?

The accrual method of accounting is designed to recognize revenues and expenses when they are earned or incurred, regardless of when cash transactions occur. This means that total sales will be recorded in the accounting period in which they are earned, rather than when payment is actually received. For example, if a company provides a service in December but does not receive payment until January, the accrual method will still recognize that revenue in December. This method provides a more accurate picture of a company's financial performance over time, as it aligns income and expenses with the periods in which they actually relate.

In contrast, the cash method records revenues and expenses based on actual cash transactions. Under this method, sales are not recognized until payment is received, which could distort the financial picture in any given year if significant sales transactions occur that do not coincide with cash payments. The tax basis method generally follows the same principles as the cash method unless specific exceptions apply. The modified cash method combines elements of both cash and accrual accounting, but it typically does not record sales until payment is received for those sales. Therefore, the accrual method is the one that most accurately reflects total sales even if payment is not received in the same year.