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accrual and deferral (FI)
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Financial Accounting (FI)
The assignment of an organization's receipts and expenditure to
particular periods, for purposes of calculating the net income for a specific period.
A distinction is made between:
- Accruals - An accrual is any expenditure before the closing key date
that represents an expense for any period after this date.
- Deferrals
- Deferred income is any receipts before the closing key date that represent revenue for any period after this date.
