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Yes, it is the same concept.
accrued income - Word Magic Diccionario En Línea Inglés a Español ...
Traducción en Español de 'accrued income' ... accrued income Sustantivo. ingreso devengado, ingreso acumulado, ingresos devengados, productos devengados, ...
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6. Accounting stage
The cash transactions are recorded as complete in the books, which allows a reconciliation from the cash based "above-the-line" fiscal accounts with the financing of any deficit "below the line." Some countries are moving toward accrual accounting, whose differences with cash accounting are discussed in Box 5.
Box 5. Cash Accounting versus Accrual Accounting
In contrast to cash-based accounting, which only recognizes expenditure when it is paid and income when it is received, accrual-based accounting requires that
• expenditure and liabilities are accounted for when goods and services are delivered, even if payments have not been made; and
• revenue and receivables are recorded when goods are sold, even if proceeds have not been received.
There are many grounds for recording government expenditure transactions on an accrual basis and some industrialized countries have now begun to do so.
First, the accrual basis requires governments to pay more attention to areas they have largely ignored--in particular accounting for their real and financial assets, setting a depreciation policy, etc., and so obtaining better information on the costs of providing services
Second, as more government activities that cannot be, or are not being, privatized are put on to a more commercial basis--through contracting out, fees for services, etc., an accrual accounting regime more in line with private sector practices is appropriate, and so better able to measure performance.
Third, in national accounting terms, government expenditure is measured on an accruals basis: a liability, and thus an expenditure, is incurred when a commitment is fulfilled and verified--not when the cash payment takes place.
The GFS is in the process of moving to an accruals basis for government expenditures, in the interest of creating a greater statistical harmony between fiscal and national accounts. However, accrual-based accounting is more complex, often difficult to administer, and hence typically not yet appropriate for many developing countries.1
What is cash basis accounting?
Most small businesses use the cash basis method of accounting, which is based on real-time cash flow. In cash method, you report an expense when it is paid, and record income when it is received. So, the day you receive a check, it becomes a cash receipt. And you record your expenses when you pay your bills, not when the bill is received.
By the way, the word "cash" is not meant literally -- it also covers payments by check, credit card, barter, etc. What is the accrual method of accounting?
With accrual accounting, you record income when it is earned, not when it is paid. Similarly, you record your expenses when the obligation arises, not when you pay it. The tax code refers to this as recording income and expenses when they are "fixed" - when all the necessary events have occurred to receive the income or expense the liability. It is not necessary for cash to change hands.
Here's how accrual would work. Say, for example, you're a consultant and you complete a job on December 15, but you haven't been paid for it. You recognize all expenses in relation to that contract when they were incurred, regardless of whether you've been paid yet or not. Both the income and expenses are recorded for the current tax year, even if payment is received and bills are paid the following February. Who should use the accrual method?
Businesses are required to use the accrual method in several instances, including:
• if the business has inventory.
• if the business is a C corporation.
• if gross annual sales exceed $5 million (with certain exceptions for personal service companies, sole proprietorships, farming businesses, and a few others).
What are some examples of the differences between cash and accrual accounting?
In a number of instances, your bookkeeping method will have an impact on your taxes. Here are a few examples:
Accelerated expenses: To accelerate expenses, accrual basis companies only need to record (not necessarily pay) every purchase and expense invoice by year-end. Cash basis companies must pay them off before the end of December.
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