BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -In brief, accrual concept requires that revenue is recognised when realised and expenses are recognised when they become due and payable without regard to the time of cash receipt or cash payment. It helps in knowing actual expenses and actual income during a particular time period.

Detailed explanation-2: -Accrual accounting is an accounting method where revenue or expenses are recorded when a transaction occurs vs. when payment is received or made. The method follows the matching principle, which says that revenues and expenses should be recognized in the same period.

Detailed explanation-3: -What is the Accruals Concept in Accounting? An accrual is a journal entry that is used to recognize revenues and expenses that have been earned or consumed, respectively, and for which the related cash amounts have not yet been received or paid out.

Detailed explanation-4: -The concept in accrual basis of accounting is that accounting transactions should be recorded in the accounting periods when they actually occur i.e. when the transactions occur, rather than in the periods when there are cash flows associated with them.