Accrual basis of accounting definition
Accounting records for deferred revenue are unearned credit revenue in the liabilities section and debit cash or bank or similar balance sheet. The cash-basis system is not acceptable according to the Generally Accepted Accounting Principles, https://personal-accounting.org/cash-basis-accounting-definition/ or GAAP. For companies required to comply with GAAP standards, the accrual-basis method is the preferred form of accounting. [...]