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Accrual of anything is, in finance, the adding together of curiosity or various opportunities over an amount of time. The proceeds will also be an accrued income on the balance sheet for the delivery fiscal year, but not for the next fiscal year when money is obtained. The fee can be an accrued expenses on the balance sheet for the delivery period, but not for the next period when the fee is paid to the salesman. The term accrual also often used as an abbreviation for the terms accrued expense and accrued revenue that share the common name word, but they have the opposite economic\/accounting characteristics.
Accrued revenue: revenue is acknowledged before money is obtained. Accrued expense: expense is acknowledged before money is paid out. Accrued revenue is an asset, like unpaid earnings from the delivery of the goods or providers, when such income is earned and a related revenue item is acknowledged, while money is to be obtained in a later period, when the quantity is deducted from accrued revenues. Accrued expense is a responsibility whose timing or quantity is uncertain by virtue to the fact that the invoice hasn’t yet been received. The uncertainty of the accrued expenses isn’t significant enough to qualify it as a provision.
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