The recording on the books of account, in a given period, of expenses or charges incurred and/or of income earned for the period, to reflect the matching of income and expenses to the fullest extent possible, independent of the dates on which settlements of such items are made.
The accounting principal of matching of costs to the revenues they generate.... more on: Accrual
Accounting The accrual method of accounting records income when the sale occurs, regardless of when you actually receive the payment. Expenses are recorded when the goods or services are rece ived, regardless of when they are paid. In other terms, with the accrual method, income and expenses are counted when it is expected, and not when the money is received or disbursed.