accrual accountingnoun [ U ]
ukusalso accruals accounting ACCOUNTINGaccounting in which amounts of money are recorded at the time something is bought or sold, although payments may not yet have been made or received:
Larger businesses are required to use accrual accounting, under which income and expenses are recognized according to when the business becomes entitled to them (rather than actually receive or pay them).
Compare
cash basis accounting