accrual
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In accounting and finance, an accrual is an asset or liability that represents revenue or expenses that are receivable or payable but which have not yet been paid.
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Encyclopedic overview
7 sectionsContents
- Accruals in accounting
- Accrued revenue
- Accrued expense
- Other uses
- See also
- References
- External links
In accounting and finance, an accrual is an asset or liability that represents revenue or expenses that are receivable or payable but which have not yet been paid.
In accrual accounting, the term accrued revenue refers to income that is recognized at the time a company delivers a service or good, even though the company has not yet been paid. Likewise, the term accrued expense refers to liabilities that are recognized when a company receives services or goods, even though the company has not yet paid the provider.
Excerpted from Wikipedia’s “accrual” article, available under the CC BY-SA 4.0 licence.