Business terms and jargon
explained. Your business dictionary
What is Accruals BasisA method of recording transactions to relate them to the period when the exchange of ownership of the goods, services or financial asset applies. For example, value added tax accrues when the expenditure to which it relates takes place, but HM Revenue and Customs receive the cash some time
later. The difference between accruals and cash results in the creation of an asset and liability in the financial accounts, shown as amounts receivable or payable.
© Crown Copyright. Material taken from National Statistics website: www.statistics.gov.uk. Reproduced under the terms and conditions of the Click-Use Licence.
<- Go Back
Business Terms Home page
Search jargon and terms database to learn more:-
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Term created / updated 2007-01-19 00:19:32
Knowledge is the key to success. That is why we have gone to great lengths to get you these business terms, and to explain them in Plain English so it is very easy to understand. Getting the right understanding and knowing your business jargon will keep you informed among your peers.
Copyright © 2004-2019 Scopulus Limited. All rights reserved.