An accrual is a journal entry that is used to recognize revenues and expenses that have been earned or consumed. Web Accrual accounting is an accounting method where revenue or expenses are recorded when a transaction occurs versus when payment is received or made. Difference Between Cash Basis And Accrual Basis Accounting Accounting Accrual Accounting Accrual Financial statements are prepared under the Accruals Concept of accounting which requires that income and expense must be recognized in the. . Web The accrual principle is the concept that you should record accounting transactions in the period in which they actually occur rather than the period in which the. Web Accrual accounting provides a more accurate view of a companys health by including accounts payable and accounts receivable. Company XYZ has 31 December year end. Accounting divides the economic. Due to the added complexity and paperwork required under the a