Accrual accounting is the general accounting ... when they purchase goods or services on credit. This requires a double entry on the general ledger: A credit to the company’s accounts payable ...

Accruals include items like unpaid wages or earned interest, while deferrals refer to prepaid expenses and unearned income. Both types of entries are used to record revenues and expenses before ...

The accounting cycle is compatible with technology and can be implemented by companies using accrual or cash accounting and double or single-entry accounting. In the case of the latter ...