What does accrual principle mean?

accrual principle meaning in Law Dictionary

concept that represents enough time between product sales and purchases plus number of payment. This is the real performance of a business.AKA accural idea. Make reference to accounting ideas.

accrual principle meaning in Business Dictionary

Fundamental accounting concept which acknowledges the time lag between sales and acquisitions similarly, and collection and repayment of cash on the other side. It types an important part of GAAP, and permits meaningful evaluations on the basis of the actual operations of the business undisturbed because of the timing of repayments. Under this concept, sales and costs tend to be taken account of into the bookkeeping duration in which they occur (and tend to be within the earnings statement for that period), if cash had been received or paid out. Also called accrual concept. See also accounting ideas.