Accrual Accounting Basis is an accounting method that recognizes economic events regardless of when cash transactions occur. It involves the recording of revenues when they are earned and expenses when they are incurred, not necessarily when the associated cash is received or paid. This method allows for more accurate financial reporting because it allows a business to account for all financial activities without having to consider the timing of payments. By using the Accrual Accounting Basis, businesses are able to better track their performance over time and make informed decisions regarding operations and investments.