accrual basis
- noun
- /əˈkruːəl ˈbeɪsɪs/
- Specialized
:
base de acumulación
- According to the glossary contained in the 2012-13 State Budget, the accrual basis of accounting is defined:
Examples
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The new rule involves what is called the accrual basis of accounting.
Blog text (22) -
Using the accrual basis of accounting means that companies must record revenues when they are earned, not just when payments are received.
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The financial statements have been prepared on the accrual basis of accounting.
Academic text (1998) -
Simple accrual basis accounting is where it gets just a little sticky.
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The financial statements of the Photographic Society of America have been prepared on the accrual basis of accounting.
Academic text (2003) -
One source of this problem is that credit subsidies are measured on an accrual basis, and from the perspective of the borrower, they have a wealth effect rather than an income effect.
Academic text (2016) -
The above means that whenever the ratio of Miller is less than zero (negative or positive), this indicates that there is a manipulation of the earning figure based on the accrual basis.
Academic text (2018) -
Retail CSBs using the accrual basis for inventory may use the retail method, which provides that, for the purpose of valuing inventory at year-end, the cost of items is the retail selling price less the average percentage markup.
Academic text (2018) -
The financial statements have been prepared on an accrual basis, ensuring that all revenues and expenses are recorded when earned or incurred.
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When adopted, the accrual basis of accounting allows businesses to reflect their economic activity more accurately in their financial reports.
Antonyms
- Specialized
1
5.3
A way of keeping business accounts that counts money only when you receive or pay it
How Immediate
- Specialized
1
5.3
- Specialized
Surface Forms
Morphology
The phrase is compositionally built from 'accrual' (accumulation/recognition of amounts) + 'basis' (method or foundation), so a learner who knows both words can infer it denotes a method founded on accruals. However, the precise accounting procedure implied (recording revenues/expenses when earned or incurred rather than on cash flow) is technical and not fully predictable from everyday meanings, so it requires domain knowledge.
Etymology
Accrual basis comes from accrual, from the verb 'accrue' meaning 'to grow or add up', and basis, meaning 'a rule' or 'a way'. It creates the image of money and costs slowly adding up and being recorded when they happen, not when cash is paid or received, so the phrase means 'to record income and expenses when they happen rather than when money changes hands'.