Accrual Basis of Accounting

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Description

Calls for recording revenue in the period in which it is earned and recording expenses in the period in which they are incurred. The effect of events on the business is recognized as services are rendered or consumed rather than when cash is received or paid.

Concept Prerequisite

Wikipedia Reference

http://en.wikipedia.org/wiki/Basis of accounting#Accrual basis

Learning Material

Covered in Topic(s)

 
The Accounting Cycle: Capturing Economic Events