What does accrual mean?

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Accepted Answer

Accrual refers to the recognition of revenue or expenses that have been earned or incurred but not yet received or paid.

Accrual accounting recognizes revenue and expenses when they are earned or incurred, regardless of when payment is received or made.
This is in contrast to cash accounting, which only recognizes revenue and expenses when payment is received or made.
Accruals are typically recorded as adjusting entries at the end of an accounting period.
Examples of accruals include accounts receivable, accounts payable, and accrued expenses.
Accruals are important for providing a more accurate picture of a company's financial performance and position.