What is entry for accrual

Question

Accepted Answer

Accrual entry is a journal entry made to record revenue or expenses that have been earned or incurred, but have not yet been received or paid.

Accrual entry is used to match revenue and expenses with the period in which they are earned or incurred, regardless of when the cash is actually received or paid.
For example, if a company provides services in December but does not receive payment until January, an accrual entry would be made in December to recognize the revenue.
Accrual entries are typically made at the end of an accounting period to ensure that financial statements accurately reflect the company's financial position.
Accrual entries involve debiting an accrued revenue or expense account and crediting a corresponding revenue or expense account.

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