Accrual - What is the difference between accrued and accrual?

Q: What is the difference between accrued and accrual?

Accrual accounting is a method of tracking such accumulated payments, either as accrued expenses or accounts payable. Accrued expenses are those liabilities that have built up over time and are due to be paid. Accounts payable, on the other hand, are current liabilities that will be paid in the near future.

Answer

You may keep track of these cumulative payments using accrual accounting, which can be used to both accrued costs and accounts payable. expenditures that have accumulated and are owed are known as accrued expenditures. The opposite is true for accounts payable, which are current obligations with payment due soon.

Accrual - What is the difference between accrued and accrual?

Other useful ERP terms

AI suggestions