Accrual
An accrual records revenue or expense before cash changes hands so statements reflect obligations and earned activity in the proper period.
Accounting terms for accrual basis, cash basis, expense recognition, and realization principles.
Accrual, Cash, and Recognition Methods covers accrual basis, cash basis, expense recognition, and realization principles.
Use these pages when an accounting method or principle changes how transactions are recognized, measured, compared, or interpreted in finance work. It sits inside Accounting Principles and Methods, so readers can move up when the broader accounting context matters.
Use the table below to choose the narrower accounting branch before applying a term to a statement line, model input, audit trail, tax schedule, covenant test, or management report.
| Area | Use it for |
|---|---|
| Accrual | An accrual records revenue or expense before cash changes hands so statements reflect obligations and earned activity in the proper period. |
| Accrual Accounting | Accounting method that records revenue when earned and expenses when incurred, regardless of cash timing. |
| Accrual Basis Accounting | Financial-reporting basis built on earned revenue, incurred expenses, accruals, deferrals, and matching rather than cash receipts alone. |
| Cash Accounting | Accounting method that records transactions when cash changes hands, often simpler but less informative for credit and performance analysis. |
| Cash Basis Accounting | Accounting method that records revenue and expenses when cash is received or paid rather than when earned or incurred. |
| Expense Recognition Principle | An accounting principle that states expenses should be recognized in the period they are incurred. |
| Realization Principle | Revenue recognition principle that records revenue when it is earned and reasonably collectible, not merely when cash arrives. |
Accounting-principles content is educational and does not provide accounting, tax, audit, legal, investment, or valuation advice.
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An accrual records revenue or expense before cash changes hands so statements reflect obligations and earned activity in the proper period.
Accrual Accounting is an accounting principle used to guide recognition, measurement, judgment, and financial statement reliability.
Accrual Basis Accounting is an accounting principle used to guide recognition, measurement, judgment, and financial statement reliability.
Cash Accounting is an accounting principle used to guide recognition, measurement, judgment, and financial statement reliability.
Accounting method that records revenue and expenses when cash is received or paid rather than when earned or incurred.
An accounting principle that states expenses should be recognized in the period they are incurred.
Revenue recognition principle that records revenue when it is earned and reasonably collectible, not merely when cash arrives.