It's important to understand how your companies are booking their sales. The "accrual" method of recognizing sales is an important concept to understand, because under this system, a company might not ...

Most businesses handle their accounting on an accrual basis. What is accrual basis accounting? It’s the practice of recording transactions at the point of origination, even if no money changes hands ...

Matching income and expenses to the periods in which they occur reflects a company's true financial position more accurately than entering records when cash is exchanged. Using this method of ...

Accrual accounting is one of the primary accounting methods and is based on the matching principle, which dictates that revenues and their associated expenses be recorded in the same accounting period ...

Private business owners need to understand the difference between cash and accrual accounting methods to accurately interpret their company's financial health. LONG ...

There's more than one way to account for Research and Development (R&D). A business using the accrual method of accounting will treat R&D costs as expenses. A business contracted to undertake R&D for ...

Relatively early in a law firm's existence, a decision is required concerning whether to report financial activities to the Internal Revenue Service on a "cash" or "accrual" accounting basis.

An accrual rate is the interest percentage added to the principal of a financial product between payments. Learn how it applies to bonds, mortgages, and vacation time.

What Is an Unrealized Gain in an Income Statement?. Unrealized gain is an income statement category reserved for investment income that a company expects to receive in the future. Think of it as ...