accrual accounting

accrual accounting definition - finance
A type of accounting system that records income when products or services are sold and recognizes expenses when they are incurred. In contrast, the cash method of accounting recognizes expenses and income when the actual money is received.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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