A system of accounting in which revenues and expen... more
An accounting system in which a company records revenues when they are earned and expenses when they are incurred, even if the company has not yet received the revenues or paid the expenses.
a method of accounting in which revenue is recorded when it is earned. Expenses are recorded when they are incurred. Other changes in the condition of the organization are recognized as they occur, without regard to the timing of the related cash receipts and expenditures.