A system of accounting which recognizes income and expenses when they are effectively earned or incurred, rather than when cash changes hands. Under accrual accounting, grain produced during the year is counted as income in that year, regardless of whether it was sold or stored. Farmers and ranchers may choose to maintain their records and file taxes using accrual accounting methods, but publicly-owned corporations are required to use this system.

Authorization Path: 2.5.6.4.26.0