ACCRUAL BASIS OF ACCOUNTING Definition

Bookmark and Share

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.

Learn new Accounting Terms

LABOR BUDGET see DIRECT LABOR BUDGET.

GREENMAIL, in the U.S., payment by a takeover target to a potential bidder, usually to buy back acquired shares at a premium - in return for the predator not pursuing the bid.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.