accrual basis


noun

a method of recording income and expenses in which each item is reported as earned or incurred without regard to when actual payments are received or made.

Nearby words

  1. accretionary wedge,
  2. accrington,
  3. accroach,
  4. accroides gum,
  5. accrual,
  6. accrue,
  7. accrued dividend,
  8. accrued expense,
  9. accrued income,
  10. accrued interest

Compare cash basis.

Origin of accrual basis

First recorded in 1930–35

Dictionary.com Unabridged Based on the Random House Unabridged Dictionary, © Random House, Inc. 2019