Under accrual-based accounting, accountants aim to record transactions in the period they relate to rather than the period in which they are paid. This complies with the accounting principle of ...

Should a small business use a cash or accrual accounting method? A CPA answers with examples. If you are an entrepreneur or small business owner, it is a good idea to familiarize yourself with both ...

For beginners and experienced analysts alike, the accounting for both accrued interest and capitalized interest can seem unintuitive. However, when you dive into the logic that dictates how ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. The financial term "accrue" means the same ...

If you run your business on a cash basis, accrued income isn't an issue. With cash accounting, you only report income when you get paid, so you don't record interest accrued on an investment. If you ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...