Definition

Accrual Accounting Convention

Accrual Accounting Convention is an accounting system that tries to match the recognition of revenues earned with the expenses incurred in generating those revenues. It ignores the timing of the cash flows associated with revenues and expenses.

Share it:  Cite

More from this Section

  • Short-term
    Short-term with reference to a debt instrument, having maturity of one year or less. ...
  • Cross-hedging
    Cross-hedging— hedging an open position in one currency with a hedge on another currency ...
  • Range forward
    Range forward refers to a complex option position which combines the purchase of a put ...
  • Estate planning
    Estate planning is a process designed to conserve estate assets before and after death, ...
  • Asset swap
    Asset swap is an interest rate swap used to alter the cash flow characteristics of an ...