accrual basis accounting

financial accounting class

What is accrual basis accounting?

Accrual basis accounting (accrual accounting, the accrual concept), depicts the effects of transaction and other events or circumstances on the reporting entity economic resources and claims in the period in which those effects occur, even if the resulting cash receipts and payments occur in different periods.

In simpler terms, accrual basis accounting is type of accounting in which revenue are … Read the rest