Question

What is the accrual basis of accounting?

Answer 1

Accrual basis of accounting is referred to as the accounting method where the revenue and expenses are recorded as and when the transaction takes place instead of the time when the actual payment is received or made.

Also read:

• Difference Between Cash Basis and Accrual Basis of Accounting
• Accrual Basis of Accounting
• GAAP Generally Accepted Accounting Principles
• Difference Between GAAP and IFRS

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