Accrual Basis of Accounting

The practice of recording revenue in the period in which it is earned and recording expenses in the period in which they are incurred. The effect on the business is recognized as goods or services are rendered or consumed, rather than when cash is received or paid.

« Back to Glossary Index

Leave a comment

You must be logged in to post a comment.

Cougar Mountain Software develops leading on-premises accounting solutions. Our hallmark software, DENALI, is specifically designed to scale to clients’ needs while maintaining an unbreakable audit trail.