Accrual

An adjustment made in a company’s end of, accounting, year financial statement. This occurs when either a purchase has been made but not yet paid for, so it is a financial liability as they are accounts payable, which is an accrued expense, or if income has been earned, for example from the sale of a product, but payment not received as this might be awaiting payment by invoice and these are accounts receivable, which is an accrued revenue.