Business and Personal Finance Dictionary

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• ACCRUAL METHOD OF ACCOUNTING
  
  A method of keeping accounts which shows expenses incurred and income earned for a given period, although such expenses and income may not have been actually paid or received. Right to receive, and not actual receipt, determines the inclusion of an item in gross income. Obligations payable to or by a taxpayer are treated as if they are discharged when they are incurred.
  
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