What does accrual concept mean?

accrual concept meaning in Business Dictionary

Fundamental bookkeeping idea which acknowledges the time lag between product sales and expenditures on one hand, and collection and payment of money on the other. It types a significant part associated with GAAP, and allows important evaluations in line with the actual operations of this business undisturbed because of the timing of repayments. Under this concept, product sales and expenditures are taken account of inside accounting period in which they take place (and are usually included in the earnings statement for the period), whether or not cash was gotten or given out. Also known as accrual concept. See additionally accounting principles.