Accrual Accounting
Accounting Dictionary
Accrual Accounting
Accrual accounting is required by U.S. GAAP. Revenues are recognized when the performance obligation is satisfied and expenses are recognized in the same period as the related revenue, not necessarily in the period in which the cash is received or expended by the company. See also deferral and matching principle.
Related Terms:
Deferral [FARBAR]Matching Principle [FARBAR]Back to Dictionary