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Today's Terms
Accrual Accounting
Definition:
Under this method of accounting, income is recognized when earned, whether or not collected, and expenses are recognized when events have occurred that determine that a liability exists and the amount of the liability can be ascertained with reasonable accuracy.
Cash Flow Projections
Definition:
A month-by-month future projection of income and expenditures over a period of time, usually a year. The projections for an existing business are based on current cash flow patterns.
Accounting Procedure
Definition:
Similar to accounting method, but applied to more routine issues. For example, the method of computing depreciation, handling small capital expenditures.
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