Definitions for "Accrual method of accounting"
Keywords:  incurred, earned, expense, method, paid
An accounting method where income is reported as soon as it is earned (as opposed to when it is actually received) and expenses are reported when they are incurred (as opposed to when they are paid).
See cash method of accounting.
One of the two most common methods of accounting, the other being the cash method. Under the accrual method of accounting, income is reported in the tax year earned, whether or not received, and deductions are claimed in the tax year incurred, whether or not paid.