Accrual basis

 

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Accrual basis

In the context of accounting, practice in which expenses and income are accounted for as if they are earned or incurred, whether or not they have been received or paid. Antithesis of cash basis accounting.



Accrual basis

Similar Matches

Accrual rate

Accrual rate

The rate of build-up of a pension in a scheme where the calculation is based on salary. The accrual rate is generally expressed as some fraction - for example, sixtieths - of final pay.


Accrual

Accrual

A term used in company accounts where income is due or a cost is incurred during an accounting period but has not been received or paid.


Interest accrual rate

Interest accrual rate

The rate at which interest accrues on a mortgage.


Accrual bond

Accrual bond

A bond on which interest accrues but is not paid to the investor during the time of accrual. The amount of accrued interest is added to the remaining principal of the bond and is paid at maturity.


Certificate of Accrual on Treasury Securities (CATS)

Certificate of Accrual on Treasury Securities (CATS)

Refers to a zero-coupon US Treasury issue that is sold at a deep discount from the face value and pays no coupon interest during its lifetime, but returns the full face value at maturity.


Further Suggestions

Accrual Accounting Convention


 
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