There is no lag time between when a transaction is made and when payment is exchanged in accrual basis accounting.

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In accrual basis accounting, there may be a lag time between when a transaction is made and when payment is exchanged. This is because revenue and expenses are recognized when they are earned or incurred, regardless of when payment is received or made. For example, if a company makes a sale on credit, revenue would be recognized at the time of the sale, even if payment is not received until a later date. Similarly, if a company incurs an expense but does not pay for it until a later date, the expense would still be recognized in the period it is incurred.

There Is No Lag Time Between When a Transaction Is