The term "accrual" refers to any individual entry recording revenue or expense in ... The downside of this method is that you pay income taxes on revenue before you've actually received it.

The accrual method requires that companies record revenue when cash is received ... It’s common for companies and customers to prepay or pay later for goods and services. Here are some examples.

Accrued interest is recorded differently for the borrower and lender. Those who must pay interest will record the accrued interest as an expense on the income statement and a liability on the ...