accrual

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Related to Accrued Revenue: Accrued Expense

Accrual Accounting

A system of accounting that recognizes revenue and matches it with the expenses that generated that revenue. Unlike other systems of accounting, which recognize revenue and expenses in the order in which they are received, the accrual accounting convention ignores the function of time and only considers what expenses generate what revenues, even if payments have not actually been made. Companies with inventories are required to use the accrual method for tax purposes.

accrual

an expense which is outstanding at the end of a trading period and which needs to be included in the accounting results for the period. For example, an unpaid INVOICE for car repairs would be included in the expenses of the trading period in calculating profits, since the repair costs relate to that period; the unpaid bill is counted as a liability of the firm at the period end, and afterwards until it is paid, and is added to CURRENT LIABILITIES in the firm's BALANCE SHEET. See PREPAYMENT.
References in periodicals archive ?
Historically, the information services company had recorded accrued revenue for contracts "based on a calculated estimate of relative value of performance that had occurred but had not yet been recognized as revenue," the company said in the filing, which caused accounts receivable on the balance sheet to appear optimistically hefty.
According to a new research report published by Allied Market Research titled " Quantum Dot (QD) Market - Global Analysis, Growth, Trends, Opportunities, Size, Share and Forecast through 2020," the global quantum dots (QD) market accrued revenue of $316 million in 2013 and it is expected to grow to $5,040 million by 2020 at a CAGR of 29.
The company has concluded that the calculated estimates for the relevant periods cannot be relied upon, and the company is unable to objectively support recording accrued revenue for these information services transactions," Acxiom said in its filing.
Accrued revenue, reflected in accounts receivable, will be reduced by $52.
Accrued revenue, which is reflected in accounts receivable, will be reduced by a total of $52.
The Restatements primarily relate to the corrections of errors in the calculation of depreciation, unbilled accrued revenue and work in process inventory.
The revised tariffed rates include: (1) the incremental RAM adjusted revenues (the components of which are shown below), (2) the accrued earnings sharing credits to be refunded, and (3) the amount of the accrued Revenue Balancing Account (RBA) balance as of December 31, 2012 (and associated revenue taxes) to be collected.