Accrual principle

Accrual principle,

Definition of Accrual principle:

  1. The basic concept of accounting recognizes the difference between a sale and a purchase on the one hand, and accepts and pays cash on the other. This is an important part of accounting principles and allows significant comparisons based on actual business operations, without interrupting payment terms. According to this principle, sales and expenses are recognized in the accounting period in which their expenses are incurred (and included in the income statement for that period), regardless of whether cash is received or not. ۔ Also known as the concept of regularity. Also look at the concept of accounting.

Meaning of Accrual principle & Accrual principle Definition