Series 79: Accrual-basis Accounting

Taken from our FINRA Investment Banking Exam

Definition of the term Accrual-basis Accounting...

an accounting method in which revenues and expenses are “recognized” (treated as real for accounting purposes) when the revenue is earned or the expense is incurred, even if the company has not yet received or paid out cash. Compare with cash-basis accounting.

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Solomon Exam Prep Study Materials for the Series 79
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