### Question
What does annual accrual method of accounting mean?


### Answer
**Annual accrual method of accounting** has the following meaning in *26 U.S.C. § 447*:

> a method under which revenues, costs, and expenses are computed on an accrual method of accounting and the preproductive period expenses incurred during the taxable year are charged to harvested crops or deducted in determining the taxable income for such years

#### Citation:
  - *26 U.S.C. § 447*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter E-Accounting Periods and Methods of Accounting > PART II-METHODS OF ACCOUNTING > Subpart A-Methods of Accounting in General**

