accrual basis

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Definitions from WordNet

Noun accrual basis has 1 sense

accrual basis - a method of accounting in which each item is entered as it is earned or incurred regardless of when actual payments are received or made
--₁ is a kind of accounting, accounting system, method of accounting
Antonyms: cash basis

Definitions from the Web

Accrual Basis

Definition: The accrual basis is an accounting method that records revenue and expenses when they are incurred, regardless of when the cash is received or paid. It recognizes financial transactions as they occur, providing a more accurate representation of a company's financial health.

Sample Sentences:

The company follows the accrual basis, recognizing revenue as soon as the product is shipped, even if payment is not received immediately.
Under the accrual basis, expenses are recorded when they are incurred rather than when they are paid.
Accrual basis accounting helps provide a more comprehensive view of a company's financial position by considering both current and future transactions.

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