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In this video tutorial, Larry, a professor of accounting, explains the concept of accruals using the example of journal entries for salaries or wages. He highlights that many accounting students struggle with this concept and recommends reviewing the difference between accrual basis and cash basis accounting. In cash basis accounting, transactions are recorded only when money moves, while with accrual basis accounting, transactions are recognized when they occur, regardless of cash movements. Similar examples can be found in financial accounting textbooks.
