Accrued revenue is used in accrual accounting where revenue is recorded at the time of sale, even if payment has not yet been received.
This is in line with the principle of revenue recognition, which requires revenue to be recognized in the period in which it is received.
Accrued revenue is recorded with an adjusting journal entry that recognizes items that would otherwise not be included in the financial statements at the end of the period.
It is commonly used in the service industry, where service contracts may span multiple accounting periods.
Accountability is the acceptance of responsibility for one’s actions. This implies a willingness to be transparent, allowing others to observe and evaluate their work.
Accounting policies are the procedures a company uses to prepare financial statements. Unlike accounting principles, which are rules, accounting policies are the standard for following those rules.
Acquisition accounting is a set of formal guidelines describing how the acquirer should report the assets, liabilities, non-controlling interests and goodwill of the acquired company.
Performance Based Management (ABM) is a means of analyzing a company’s profitability by looking at every aspect of its business to determine its strengths and weaknesses.