What does accrual concept mean?

Answer Accrual concept is an accounting process that records income and expenses as they occur and not when cash changes hands. In another accounting method such as cash basis, records are kept when the c... Read More »

Top Q&A For: What does accrual concept mean

What does the accounting term accrual mean?

The term "accrual" refers to a type of accounting which reports income as earned and expenses as they are incurred. The other type of accounting, cash basis accounting, reports income as it is rece... Read More »

Does GAAP use the accrual system of accounting?

The Generally Accepted Accounting Principles (GAAP) uses the accrual basis of accounting instead of the cash basis of accounting. The main difference between methods is when revenues and expenditur... Read More »

Does the 3M company use a cash base or an accrual accounting basis?

3M uses the accrual method of accounting. Corporations with annual gross receipts in excess of $5 million cannot use the cash method of accounting, per Internal Revenue Service regulations. 3M had ... Read More »

What is accrual accounting?

When starting a business, a choice will need to be made on the accounting method to be used. The choices are accrual or cash-basis. In most cases, the business will want to choose the accrual metho... Read More »