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Accrual accounting - Coggle Diagram
Accrual accounting
The matching concept
identify decreases in assets and increases in liability
that result in decrese in equity
these are expenses
step 2
measure these expenses and substract them from revenue
lykkäykset =deferrals
depreciation
decrease the assets book value over time
etukäteen maksettu
Accruals = siirtovelat
accrued expense
company records before paying cash
accrued revenue
revenue recorded before collecting cash
meaning
records impact of trasactions when they occur
VS Cash basis
records when cash moves