a method of accounting in which each item is entered as it is earned or incurred regardless of when actual payments are received or made
- This concept applies to firms that employ an accrual basis accounting system.
- The debit and credit method, as well as the accrual basis of accounting, shall be adopted as the methods and principles for keeping accounts.
- Understand how accrual accounting differs from a cash basis.
- Under the accrual basis it needs to record revenue in the period in which it is earned and to record expenses in the period in which they are incurred.
- The financial statements of Legal Aid Services Council are prepared on an accrual basis.
- cash basis 现金制(以现金为依据的记...