What does accrual mean in accounting, and what does accrual mean in finance

Accrual is calculation and withdrawal.

Multiply the prescribed ratio with the prescribed base to calculate and extract, and include a certain subject refers to a prescribed base (such as the payment of legal employee remuneration), multiplied by the prescribed ratio (such as the welfare payable is 14 of the salary in the country), according to this method to calculate the process of the welfare payable payable, and the inclusion of the welfare payable account is the interpretation of the latter sentence.

1. Under the premise of accrual accounting, certain expenses that have been incurred but not actually paid are included in advance;

2. According to the provisions of the system, calculate and withdraw the relevant (retention, impairment) provisions.

3. Anticipate certain accounts payable.

4. Other expected items in line with the accounting system.

It is to multiply the prescribed ratio by the prescribed base number to calculate and extract, and include it in a certain subject.

According to a certain base, multiply according to the prescribed ratio to calculate the extraction.

It's just that when it doesn't happen, it's calculated in advance, and it's in reserve (and in fact it does happen later).For example, long-term borrowing, with a three-year term, and interest payments once a year. Then this is the interest paid at the end of the year for the entire year for 12 months.

As a result, the cost for December of that year has increased (financial costs), which should actually be shared on a monthly basis. In this way, although there is no need to repay the interest every month, it is still withdrawn so as not to reduce the expenses of the month. This is done in accordance with the accrual principle.

The meaning of accrual is calculation and withdrawal, which refers to the calculation and withdrawal of the calculation and withdrawal according to the prescribed ratio and the prescribed base, and is included in a certain account. The reason for the financial provision is that, according to the accrual principle, there is no actual flow of funds, but it should be attributed to the expenses of the current period.

Generally speaking, wages, employee benefits, taxes, depreciation, bank interest and other subjects need to be accrued.

According to the Accounting Standards for Business Enterprises, most enterprises now require the implementation of accrual accounting. On the accrual basis, certain expenses are incurred upfront but are not actually paid. For example, the power supply company will supply you with electricity first, but it will generally not come until the next month to pay the electricity bill.

At this time, when the accounting treatment of the current month is carried out, it is necessary to withdraw the expenses incurred during the period, and then carry forward when the follow-up funds are in place.

In accordance with the principle of prudence and authenticity in the principle of one trillion empty in accounting, the Ministry of Finance [1999] No. 35 added provisions for short-term investment price decline, inventory price decline, long-term investment impairment provision, plus provision for accounts receivable bad debts, collectively referred to as the four provisions.

Timing of accrual:

1. Under the premise of accrual accounting, certain expenses that have been incurred but not actually paid are included in advance.

2. According to the provisions of the system, calculate and withdraw the relevant (retention, impairment) provisions.

3. Anticipate certain accounts payable.

4. Other expected items in line with the accounting system.

Accounting accrual is a knowledge that must be grasped in beginner accounting. So what exactly is accounting provision? How to understand the provision in accounting? As a finance person, it's important to understand clearly. Next, let's take a look with the deep space net!

How to understand the provision in accounting? What is Accounting Provision?

Accrual means calculation and withdrawal. The accountant calculates and extracts according to the prescribed ratio and the base number of the rules and regulations, and includes it in a certain account.

Sometimes, if the fee has been incurred but the payment has not been completed. In this case, it is necessary to calculate the premise. For example, the salary of employees in a company is not paid in the current month, but in the next month. Then it is necessary to accrue at this time.

The timing of the accrual occurs in the following situations:

1. On the premise of accrual accounting, some expenses that have been incurred but have not been actually paid are included in advance.

2. According to the provisions of the corresponding system, the relevant retention and impairment provisions shall be withdrawn.

3. Estimate certain accounts payable.

4. Other expected items that are in line with the accounting system.

Knowledge development: What are the contents of the four new provisions?

1. Provision for impairment of entrusted loans: At the end of the period, the enterprise should make provision for the impairment of entrusted loans based on the difference between the principal amount of the entrusted loan and the recoverable amount, whichever is lower.

2. Provision for impairment of fixed assets: At the end of the period, the enterprise should measure the fixed assets according to the book value and the recoverable amount, whichever is lower, and make provision for the impairment of fixed assets on the difference between the recoverable amount and the book value.

3. Provision for impairment of intangible assets: At the end of the period, if the recoverable amount of the enterprise is lower than the book value due to obsolete technology, long-term idleness and damage, etc., the provision for impairment of intangible assets should be made at this time.

4. Provision for impairment of construction in progress: If the enterprise is expected to be impaired in the construction in progress, the provision for asset impairment shall be made on the basis of the above principles.

The meaning of accrual in accounting is to calculate and extract, according to the prescribed ratio of the calculation and withdrawal of multiplication with the specified base, included in a certain account. Sometimes, expenses have been incurred but have not been paid, in which case they will be accrued. For example, the salary of employees of the enterprise is not paid in the current month, but in the next month, in this case, in order to make the financial statements truly reflect the operation of the enterprise, it must be accrued, otherwise the profit will be inflated.

Accrual refers to the process of calculating the amount of benefits payable on a specified base (e.g., the legal employee remuneration paid) multiplied by the prescribed ratio (e.g., the national standard for the payment of benefits is 14%).

Functions of accrual: 1. Under the premise of accrual accounting, certain expenses that have been incurred but not actually paid are included in advance. 2. According to the provisions of the system, calculate and withdraw the relevant (retention, impairment) provisions.

3. Anticipate certain accounts payable. 4. Other expected items in line with the accounting system.

Timing of accrual: 1. Under the premise of accrual accounting, certain expenses that have been incurred but not actually paid are included in advance. 2. According to the provisions of the system, calculate and withdraw the relevant (retention, impairment) provisions.

3. Anticipate certain accounts payable. 4. Other expected items in line with the accounting system.

Accrual is calculation and withdrawal. According to the prescribed ratio, multiply the base number specified by the stool mountain to calculate and extract, and include it in a certain subject. It refers to multiplying a prescribed base (such as the legal employee remuneration paid) by the prescribed ratio (such as 14% of the salary stipulated nationwide for welfare payables), and the process of calculating the welfare payable according to this method is the process of withdrawing the welfare expenses payable, and the inclusion of the welfare expenses payable account is the interpretation of the latter sentence.

The transfer ledger account does not need to change.

Functions: 1. Under the premise of accrual accounting, some expenses that have been incurred but not actually paid are included in advance.

2. According to the provisions of the system, calculate and withdraw the relevant (retention, impairment) provisions.

3. Anticipate certain accounts payable.

4. Other expected items in line with the accounting system.

Timing of accrual: 1. Under the premise of accrual accounting, certain expenses that have been incurred but not actually paid are included in advance.

2. According to the provisions of the system, calculate and withdraw the relevant (retention, impairment) provisions.

3. Anticipate certain accounts payable.

4. Other expected items in line with the accounting system.

Accounting accrual is to calculate and extract, according to the prescribed ratio and the prescribed base number multiplied to calculate and withdraw into a certain account.

Accounting accrual occurs in the following situations:

1. Under the premise of accrual accounting, certain expenses that have been incurred but not actually paid are included in advance;

2. According to the provisions of the system, calculate and withdraw the relevant (retention, impairment) provisions.

3. Anticipate certain accounts payable.

4. Other expected items in line with the accounting system.

The accrual is in line with the accrual principle of the enterprise, and also reflects the prudence of the enterprise.

Accounting needs to be accruedAccording to the Accounting Standards for Business Enterprises, most of the enterprises will now require the implementation of accrual accounting. Under the accrual system, certain expenses are incurred in advance, but are not actually paid.

For example, the power supply company will supply you with electricity first, but you will generally come to pay the electricity bill next month. For example, when an enterprise pays a salary, it will generally be paid next month. For example, the loss of machinery and equipment, in fact, is consumed every day, but there is no capital on the book to reflect this part of the loss.