What is the accrual basis of accounting equation?

wem · #1 Jan 14, 2008, 03:49 AM

pready · Jan 14, 2008, 06:11 AM

Accrual Accounting is the recognition of revenue when earned and expenses when incurred.

Example: Sevice provided for a client but not yet billed. Expenses Incurred include Workers work for the period ie. wages earned but not yet paid.



At Ask Me Help Desk you can ask questions in any topic and have them answered for free by our experts. To ask questions or participate in answering them you must register for a free account. By registering you will be able to: Get free answers from experts in any of our 300+ topics. Accept money for answers that you provide. Communicate privately with other members (PM). See fewer ads. Sign Up!