What is accrual accounting?

Answer 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 »

Top Q&A For: What is accrual accounting

Is accrual accounting the same as cost accounting?

Accrual accounting and cost accounting are different ways of measuring a company's financial performance. Accrual accounting specifically looks at a company's revenues and the expenses that go into... Read More »

What Are Financial Issues With Accrual Accounting?

Accrual accounting is used by most large firms in the United States. This basis of accounting recognizes income and expenses as they occur, not when the money actually exchanges hands. The accrual ... Read More »

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 »

Explain Accrual Accounting?

Accountants keep books using two methods: cash and accrual. Both methods have advantages and disadvantages, however, accrual is the "official" way of doing accounting in the U.S. It recognizes inc... Read More »