What is accural and deffered payement?

Accrual refers to the accounting method where revenues and expenses are recorded when they are earned or incurred, regardless of when cash transactions occur. This approach ensures that financial statements reflect the true financial position of a business during a specific period. Deferred payment, on the other hand, involves postponing the payment for goods or services to a later date, which can affect cash flow and financial management. Together, these concepts help businesses accurately track their financial performance and obligations.