Accrual accounting - recognition of revenue when earned and expenses when incurred. They are recorded at the end of an accounting period even though cash has not been received or paid. The alternative is cash basis accounting . An example of accrued revenue is dividend income earned on stock owned even though it has not yet been received. Accrued salary expense due employees at period-end is an example of an accrued expense.
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Last modified at 3/25/2008 1:09 AM by scott phillips
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