what is accrual, journal entries for accruals, debtor's receivable?

Question

Accepted Answer

Accrual is an accounting method that recognizes revenues and expenses when they are incurred, regardless of when cash is exchanged.

Accrual accounting recognizes revenue and expenses when they are earned or incurred, not when cash is exchanged.
Journal entries for accruals involve debiting an expense account and crediting a liability account.
Debtor's receivable refers to the amount of money owed to a company by its customers or clients.
Accruals help provide a more accurate representation of a company's financial position and performance.
Example: Accrued salaries would involve debiting the salary expense account and crediting the accrued salaries liability account.

Top SVC India Financial Analyst interview questions & answers