Accrual

Adding together and/or taking out expenses or revenues on balance sheet over certain accounting periods. For example, a company delivers a service to another company which will pay for it in 30 days, in the next fiscal year and the new fiscal year for the providing company is to begin in a week after delivery of service. In this case the company will record the future income as a revenue in the current income statement which is part the nearly ending fiscal year, despite the fact that it will be actually paid during the new accounting period.