Subscription in advance is an example of an accrual. An accrual is an accounting entry that recognizes revenue or expenses that have been earned or incurred but not yet received or paid. In the case of subscription in advance, the company has received payment for services that it has not yet provided, so the revenue is recognized as an accrual until the services are provided. Once the services are provided, the accrual is reversed, and the revenue is recognized as earned.