Accounting method that records revenues and expenses when they are incurred, regardless of when cash is exchanged. The term "accrual" refers to any individual entry recording revenue or expense in ...

so it would be counted as June revenue using the accrual accounting method. If Acme Adhesives instead used cash-based accounting, they would record this revenue when payment was received on July ...

Here are three additional drawbacks to keep in mind when using cash basis accounting: The key difference between the cash basis and accrual method accounting is the timing of when the transactions ...