Accounting Dictionary - Letter A
refers to the recognition of revenues or expenses at some time before cash has been transferred. Examples of accruals are accrued revenues (e.g., interest receivable) or accrued expenses (e.g., accrued rent expense). Accruals represent a concept of accrual (accrual basis) accounting. Recognition of revenues or expenses related to accruals is normally performed at the end of an accounting period by posting adjusting journal entries.
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