Definition of "accrual basis" []

• A method of accounting in which each item is entered as it is earned or incurred regardless of when actual payments are received or made (noun)

WordNet. Princeton University. 2010.

• "Clauses that charged expenses on an accrual basis but included income on a cash basis, included gross participations as negative-cost items that accrued both overhead and interest, and provisions relating to the charging of interest and overhead against each other were rejected by the court."