Accrual accounting is the GAAP-preferred practice of recording all revenues and expenses when they occur, even if payment has not yet been sent or received. In business, all financial transactions ...

Accrual accounting is a method that records revenue when it is earned, meaning when a product or service has been delivered to a customer and there is a reasonable expectation of payment.

A common practice is to record the revenue when we receive payment (cash) from the customer. This is referred to as the cash basis of accounting. However, the university uses the accrual basis of ...