What is Accrual accounting?
It records income when earned rather than when paid, which shows the true shape of a business but hides how much cash is actually in the account.
Money
The definition
Recording income and costs when they are earned or incurred, rather than when cash moves.
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Questions people ask
What is Accrual accounting?
Recording income and costs when they are earned or incurred, rather than when cash moves. It records income when earned rather than when paid, which shows the true shape of a business but hides how much cash is actually in the account.