3 5: Accrual Basis Accounting Business LibreTexts
Accrual accounts include, among many others, accounts payable, accounts receivable, accrued tax liabilities, and accrued interest earned or payable. Under the accrual method, the $5,000 is recorded as revenue as of the day the sale was made, though you may receive the money a few days, weeks, or even months later. Accrual-basis and cash-basis accounting …