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 |