What Are Accruals? How Accrual Accounting Works, With Examples
For example, if you’re a caterer, and your food supplier provides you with $300 of lamb chops on March 15th, with an invoice due on April 15th, you would call that $300 an accrued expense. Under modified accrual accounting, revenues are recognized when they become available and measurable. Availability arises when the revenue is available […]