Dictionary of Banking Terms: accrual basis
accrual basis
accounting system in which revenues and expenses are recognized in the period in which they arise, regardless of when the cash for the revenue or the expenditure actually occurs. Accrual accounting is the only basis of accounting approved under Generally Accepted Accounting Principles and is used by public companies and most privately owned companies.
Dictionary of Finance and Investment Terms: accrual basis
accrual basis
accounting method whereby income and expense items are recognized as they are earned or incurred, even though they may not have been received or actually paid in cash. The alternative cash basis accounting.
