Tag: Recognition

Accrual Basis of Accounting: Recognizing Revenue and Expenditure

Accrual Basis of Accounting: Recognizing Revenue and Expenditure

In the realm of finance and accounting, the accrual basis stands as a cornerstone principle, guiding the recognition of revenue and expenditure. Unlike cash basis accounting, which records transactions when cash is exchanged, the accrual basis focuses on when revenue is earned or expenses are incurred, regardless of the timing of cash flows or invoice […]