and does not change the revenue recognized on the income statement. Accrual accounting is a method of recording revenues and expenses. Under this method, both revenues and expenses are recorded ...

Accounting method that ... That way, recording income can be put off until the next tax year, while expenses are counted right away. With the accrual method, income and expenses are recorded ...

Cash-Flow Statement The cash-flow statement is designed to convert the accrual basis of accounting used to prepare the income statement and balance sheet back to a cash basis. This may sound ...

Unearned revenue is a liability because it represents a company’s obligation to deliver goods or services in the future.

Reviewed by David Kindness Fact checked by Vikki Velasquez An accrual has occurred but has not yet been paid for. This can ...