Accrual Accounting
An accounting method that records revenue when earned and expenses when incurred, regardless of cash timing.
Read definition →TYS Accounting Glossary
Accounting Methods & Revenue
Terms related to when income and expenses are recorded, how revenue is reported, and how inventory or long-term work may be treated.
Home > Accounting Glossary > Accounting Methods & Revenue
10 terms in this topic
Accrued Expense
An expense incurred but not yet paid or recorded through a vendor invoice.
Read definition →Accrued Revenue
Revenue earned but not yet billed to a customer or received in cash.
Read definition →Cash Basis Accounting
An accounting method that generally records income when cash is received and expenses when cash is paid.
Read definition →Cost of Goods Sold
The direct cost of products sold by a business during a period.
Read definition →Deferred Revenue
Cash received before the related goods or services have been delivered; generally a liability until earned.
Read definition →Inventory
Goods held for sale or materials and supplies expected to be used in producing goods for sale.
Read definition →Prepaid Expense
A payment made in advance for a future benefit, such as insurance, rent, software, or a service contract.
Read definition →Revenue Recognition
The accounting process of determining when and how much revenue should be recorded.
Read definition →Unearned Revenue
Another term for deferred revenue: money received before a business has earned it.
Read definition →Work with a trusted advisor
TYS provides accounting, tax, construction-accounting, and business-advisory support to closely held businesses, contractors, individuals, and families. With offices in Fairport, New York, and Walnut Creek, California, TYS helps clients better understand their financial information and prepare for important decisions.
The information on this page is provided for general educational purposes only and is not accounting, tax, legal, financial, insurance, bonding, or business advice. Consult qualified professionals regarding your particular circumstances.
Back to the Accounting Glossary →