accrual method of accounting
One method of accounting where economic events, such as income and expenses, are recorded at the moment they are incurred, as opposed to when they are received. This provides a more accurate statement of the current financial state of a company and is the method more frequently used by companies.
Definition from Nolo’s Plain-English Law Dictionary
A method of accounting in which income is accounted for when earned (not received) and expenses are accounted for when liability for paying them is incurred (not when they are paid). Compare: cash method of accounting
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:10 pm
