# Accrual Accounting

*Professional & Ethics — Finicade finance glossary*

Recording revenue and costs when they're earned or incurred, not when cash actually moves. It gives a truer picture of a period's activity — but opens the door to judgement, and to manipulation.

**Related terms:** [Cash Flow Statement](https://finicade.com/glossary/cash-flow-statement), [Income Statement](https://finicade.com/glossary/income-statement), [IFRS vs GAAP](https://finicade.com/glossary/ifrs-vs-gaap)

**Taught in:** Charter Climb — Statements & the Reporting System

Source: https://finicade.com/glossary/accrual-accounting