Accrual Basis Definition

What Is Meant by Accrual Basis?

Accrual basis may be defined as the accounting system in which revenues, expenses, and other changes in assets, liabilities, and owner’s equity are accounted for in the period in which the economic event takes place, not when the cash inflows and outflows take place.

True Tamplin, BSc, CEPF®

About the Author
True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.

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