What is an accrual?, Accounting Basics

Accrual basis of accounting means that the costs or revenues of events are renowned in the period in which they happens; by the cash flows may take place in another accounting period.


Like for a period of July 05 - October 05, if the organization was because of receive 1000K from an individual X but has not received yet for some reason, will receive in November 05. It would be still be accounted for in the period July 05 - October 05 and not the period initial from November 05.

 

Posted Date: 4/1/2013 6:14:14 AM | Location : United States







Related Discussions:- What is an accrual?, Assignment Help, Ask Question on What is an accrual?, Get Answer, Expert's Help, What is an accrual? Discussions

Write discussion on What is an accrual?
Your posts are moderated
Related Questions
Fixed asset are assets which provides the business future benefit Fixed assets are those which are tangible in nature and is not meant for sale in the near future and from whi

Q. Explain about perpetual inventory procedure? When discussing inventory we require clarifying whether we are referring to the physical goods on hand or the Merchandise Invent

Based on the financial statements for Jackson Enterprises (income statement, statement of owner's equity, and balance sheet) shown below, prepare the following financial ratios.

Fixed Assets An additional categorization other than current or long-term is as well used for property. A "fixed asset" is an asset which is planned to be of a lasting nature a

Rosco Company purchased 35,000 shares of common stock of Paxton Corporation as a long term investment for $900,000. During the year, Paxton Corporation reported net income of $300,

Difference between Fica and federal income taxes  Employers should file Form 940 with the IRS at the end of every calendar quarter. There are several rules about when to turn i

what is the exact meaning of journal that we doing entries??

define accounting. Explain the accounting concepts which guide the accountant at the recording stage.

Q. What is Consistency? Consistency in general requires that a company use the same accounting principles and reporting practices through time. This concept disallows indiscrim

Why is it more difficult to account for the inventory of a manufacturing firm than for that of a merchandising firm?