What is accrual basis.. purchase entry.. vendor entry

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Accrual basis is a method of accounting where revenue and expenses are recognized when earned or incurred, regardless of when payment is received or made. Purchase entry and vendor entry are related to recording transactions in this method.

Accrual basis recognizes revenue and expenses when earned or incurred, not when payment is received or made
Purchase entry is the recording of a purchase transaction, including the amount, date, and vendor information
Vendor entry is the recording of a payment made to a vendor, including the amount, date, and vendor information
Both purchase entry and vendor entry are recorded in the accounting system using the accrual basis method
For example, if a company purchases inventory on credit, the purchase entry would be recorded when the inventory is received, not when payment is made to the vendor

What is accrual basis.. purchase entry.. vendor entry

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