Accrual basis definition

Accrual basis has the meaning set forth in Section 3.1(c).

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Accrual basis means the recording of revenue in the period when it is earned, regardless of when it is collected, and the recording of expenses in the period when incurred, regardless of when they are paid.

Accrual basis means the basis of accounting, under which costs and benefits are regarded as applicable to the period in which the liability for the cost is incurred, or the right to benefits arises regardless of when invoiced, paid or received.

Examples of Accrual basis in a sentence

• Certain terms used herein are defined as follows: Accrual basis means that basis of accounting under which costs and benefits are regarded as applicable to the period in which the liability for the cost is incurred or the right to the benefit arises, regardless of when invoiced, paid, or received.

• ACCRUAL BASIS ACCOUNTING- Accrual basis revenue is recognized when the transaction occurs (when earned), regardless of the period in which the related cash is collected.

• Such payments shall be made within approximately 10 business days after the Company receives the executed agreement referred to in 3(e) below but in no case prior to the expiration of any period during which the Executive is permitted to revoke such agreement.

• Pb. Chandigarh vide its Memo.No.DLG-DCFA-2003/9413-9553 dated 31-3-2003 has issued inst ructions for the switching over the Double Entry Accounting System i.e. Accrual basis Accounting System instead of the present method of Single Entry System i.e. cash based with regard accounting system.

• Generally accepted accounting conventions were used in application of the principle of conservatism, using these basic assumptions: • Going concern • Consistency of accounting methods • Accrual basis of accounting and in conformity with the general rules for the preparation and presentation of annual financial statements.

More Definitions of Accrual basis

Accrual basis means the recording of the financial effects on a municipal corporation of transactions and other events and circumstances that have cash consequences for the municipal corporation in the periods in which those transactions, events and circumstances occur, rather than only in the periods in which cash is received or paid by the municipal corporation.

Accrual basis means that system of accounting

Accrual basis means that basis of accounting under which costs and benefits are regarded as applicable to the period in which the liability for the cost is incurred or the right to the benefit arises, regardless of when invoiced, paid, or received.

Accrual basis means the basis upon which, in transactions thereon, revenues are accounted for when earned or due, even though not collected, and expenditures are accounted for as soon as liabilities are incurred, whether paid or not;

Accrual basis means the recording of the financial effects on a municipal corporation of

Accrual basis means the basis of accounting under which revenues are recorded when earned and expenditures are recorded when they result in liabilities for benefits received, even though the receipt of the revenue or payment of the expenditures may take place, in whole or in part, in another accounting period.

Accrual basis means a method of accounting in which accounts and notes receivable are recorded in the regular books of account for the period in which the firm first has a claim of right to them.