What is meant by accrual accounting?

Question:

What is meant by accrual accounting?

Accounting Basis:

Accounting basis refers to the method of recognizing and reporting revenue, expenses, assets, and liabilities in accounting records. The basis of accounting can be primarily of two types: Cash basis and Accrual basis.

Answer and Explanation: 1

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Accrual accounting refers to the method under which revenue and expense transactions are recorded when earned or incurred. In other words, revenue...

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The Differences Between Accrual & Cash-Basis Accounting

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Chapter 4 / Lesson 3
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Learn about the difference between cash and accrual accounting. See accrual vs. cash basis accounting examples, and identify benefits of the two types of accounting.


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