Written by True Tamplin, BSc, CEPF®
Updated on July 10, 2021
What is meant by the accounting term “Accruals”?
Accruals are those expenses that are incurred and the revenues that are earned over time, but which are recorded periodically only.
Accruals Accounting Definition
Accruals accounting is the traditional system of accounting in which income is compared with expenditure to arrive at the profit over a period of time.