The recognition of revenues when they have been earned and expenses when they have been incurred is referred to as accrual accounting. The use of accrual accounting results in recording receivables and liabilities, with no immediate effect on cash. The use of accrual accounting can also result in the recognition of expenses when assets expire or are used up (or consumed) during a period. Many functions must be performed to earn revenue.
Details
- Publication Date
- May 22, 2013
- Language
- English
- Category
- Education & Language
- Copyright
- All Rights Reserved - Standard Copyright License
- Contributors
- By (author): Homework Help Classof1
Specifications
- Format