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posted on 26 Nov 2019
Accrual is the process of recognizing and recording expenses or revenues in the financial statements, even if the cash has not been exchanged.
Accrual accounting recognizes transactions when they occur, regardless of when the cash is received or paid.
It ensures that financial statements reflect the economic reality of a business.
Accrued expenses and accrued revenues are common examples of accruals.
Accruals are necessary...
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