Examlex
Write the meaning of the abbreviation on the line.
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Accrual Basis
An accounting method where revenues and expenses are recorded when they are earned or incurred, regardless of when cash is exchanged.
Cash Basis
An accounting method where revenues and expenses are recognized only when cash is exchanged, as opposed to when they are incurred.
Permanent Account
An account that is not closed at the end of the accounting period and its balances are carried forward into the next period.
Temporary Account
An account used in accounting that is closed at the end of each accounting period, transferring its balance to a permanent account.
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