Investopedia / Sydney Saporito An accrual is a way of recognizing revenues or expenses that have been earned or incurred but not yet paid. Accruals reflect money earned or owed that hasn't changed ...

Similarly, expenses under the cash method are recorded only when the payment is actually made whereas accrual accounting records them when they've been incurred. Cash basis accounting is simpler ...

Accrual accounting is another term for the matching principle. This requires that companies match revenues with the expenses incurred to generate them. Accrual accounting highlights the fact that ...