What is the definition of accrual accounting?

Answer by  richmiller3214 (138)

Accrual accounting measures the financial performance of a company by realizing transactions when they occur and not based on whether money has changed hands or bills have been paid. This method gives a more accurate financial picture of the businesses position at any particular point in time. Its about matching revenues with expenses in the right time frame.

Answer by  keye01 (17)

Accrual accounting is the accounting method that measures the operation of a company by distinguishing economic events regardless of when cash received or expense. In addition, this method records both revenue and expenses of the company when they occur. Likewise, this method is most applicable to use than that cash basis.