ACCOUNTING TERMS - ACCOUNTING DICTIONARY - ACCOUNTING GLOSSARY
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ACCRUAL BASIS OF ACCOUNTING Definition
ACCRUAL BASIS OF ACCOUNTING is wherein revenue and expenses are recorded in the period in which they are earned or incurred regardless of whether cash is received or disbursed in that period. This is the accounting basis that generally is required to be used in order to conform to generally accepted accounting principles (GAAP) in preparing financial statements for external users.
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EXPENDITURE is a cost incurred in the normal course of business to generate revenues. See expenses.
CAPITAL SURPLUS is an archaic term. See PREMIUM ON CAPITAL STOCK.