Accrual accounting is an accounting system in which the measurement of income is based on cash receipts and cash disbursements.

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Accrual accounting is an accounting system in which the measurement of income is based on the accrual of revenue and expenses, rather than solely on cash transactions. This means that income is recognized when it is earned, and expenses are recognized when they are incurred, regardless of when actual cash receipts or disbursements occur.

Accrual Accounting Is an Accounting System in Which the Measurement