What is the accrual basis in simple terms?
Definition of 'accrual basis' Under the accrual basis, companies record transactions that change a company's financial statements in the periods in which the events occur. An accrual basis is a system of accounting where income is recognized before payment is received and expenses are recognized before they are paid.
Definition of 'accrual basis' Under the accrual basis, companies record transactions that change a company's financial statements in the periods in which the events occur. An accrual basis is a system of accounting where income is recognized before payment is received and expenses are recognized before they are paid.
