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LSDefine

Simple English definitions for legal terms

accrual method of accounting

Read a random definition: in jure

A quick definition of accrual method of accounting:

The accrual method of accounting is a way that big businesses keep track of their money. It means they report all the money they expect to get and all the money they owe, even if they haven't paid or received it yet. This helps them have a better idea of how much money they have at any given time. The government makes most big businesses use this method because it's more accurate. Some businesses use a different method called the cash method, which only reports money when it's actually paid or received.

A more thorough explanation:

The accrual method of accounting is a way that most large businesses use to report their liabilities and expected income. This method requires businesses to report all economic transactions, whether liabilities or income, when all the events have occurred which fix the right to receive such income. This method is used by businesses with very complex and numerous transactions occurring.

For example, if a company signs a sale contract to purchase a warehouse but has not paid yet, the accrual method would require the company to report the transaction because it is likely to occur. However, the cash method would not require reporting the transaction until the payment occurred.

The Internal Revenue Service (IRS) requires most businesses with income above $25 million to use this method of accounting because it more accurately reflects the current financial status of businesses. Some businesses also use the cash method of accounting which only reports transactions when they occurred.

accretion | accrue

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Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
WorthlessAttractiveZombie
7:44
My berkeley paragraph finally disappeared. I definitely think it is just an indicator that they are actively reviewing files, and does not mean anything about A, WL, or Rs
WorthlessAttractiveZombie
7:46
Also has anyone's date disappeared for W&L? Mine did last night
7:55
@WorthlessAttractiveZombie: mine did yesterday morning
7:56
Oops sorry I meant Vilanova. Mine disappeared last week
soapy
8:48
UMN under review! As predicted, decisions are gonna come out early December
Minus those random R decisions from UMN yesterday though right? I wonder what happened there. I don’t think I’ve seen a school start the season out with anything but As on here
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