Discover how accruals affect company finances, with insights into the accrual accounting method, its applications, and examples illustrating its principles.

Sometimes companies purchase businesses for more than what they are actually worth. The difference between a business' actual worth and what someone pays for that business is referred to as goodwill.

With cash accounting, bookkeeping is simple: You don't record any transactions until money actually changes hands, Accounting Tools says. With accrual accounting, you record transactions as soon as ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...