Accounting method that records revenues and expenses when they are incurred, regardless of when cash is exchanged. The term "accrual" refers ... An excellent example is a sale on credit.

This article discusses a Tax Court decision, recently affirmed by the Court of Appeals for the Ninth Circuit, concerning when the “all events” test for the accrual of expenses for tax purposes is met.

For example, a small business that uses cash ... transactions involving credit or inventory, typically prefer accrual accounting. This method records revenues and expenses when they occur, not ...