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It's very simple, according to accrual concept, the revenue is recognized when earned and expenses are recognized when incurred irrespective of weather cash is received or paid in that accounting period.
Acccrual method of accounting is recording income and expenditure when they are accrued irrespective of actual receipts or payments.
Accrual accounting is recording income when goods have been delivered or service rendered regardless of when cash is collected and recording expenses when incurred regardless of when it is paid.
Accrual accounting is recording When expenses is incurred for any services & where as income side income when goods have been delivered or service rendered accrual a/c is take place. regardless of when cash is collected and recording expenses when incurred regardless of when it is paid.
the accrual method is the method where the financial statements are prepared under it recognize revenues and expenses when it occur rather than when their associated cash is received or paid.
Accrual method is a method in which expenses or income booked when it accrued and it can be paid or received later. Major accounting system is based on accrual and hardly some one follows Cash Method.
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