An accounting principle aiming to provide a cautious outlook by not overestimating assets and income, ensuring that uncertainties and potential losses are adequately considered.
Accrue refers to accounting to recognize income, expenses, or liabilities when they occur rather than when cash changes hands.
The cash basis, or cash method, is an accounting approach used by most individual taxpayers that recognizes income and deductions when money is received or paid.
A comprehensive guide to understanding the concept of accruing, its mechanism, and the two main types of accruals in finance and accounting.
