Accrual

is the recognition of revenue when earned or expenses when incurred regardless of when cash is received or disbursed.

Accrual is the recognition of revenues when earned and expenses when incurred, regardless of cash movement. It ensures proper matching of income and expenses in the period.

- Used to explain the concept in accounting and business contexts.
- Used when training staff or documenting procedures and policies.

- Example: Teams reference **Accrual** when defining terms in manuals, policies, or training materials.

- Why it matters: Improves clarity and consistency across documentation and decision-making.