Definitions
There is 1 meaning of the phrase
Accrual Basis.
Accrual Basis - as a noun
A method of accounting in which each item is entered as it is earned or incurred regardless of when actual payments are received or made
Antonyms (Opposite Meaning)
cash basisExample Sentences
"Under the accrual basis of accounting, revenue is recognized when it is earned, not necessarily when cash is received."
"The accrual basis requires that expenses be recorded when they are incurred, not when they are paid."
"One advantage of using the accrual basis is that it provides a more accurate picture of a company's financial performance."
"The accrual basis allows for better matching of revenues and expenses, resulting in more meaningful financial statements."
"Many large corporations use the accrual basis of accounting to comply with generally accepted accounting principles."
