CHAPTER 4Accrual Accounting Concepts CHAPTER OVERVIEWIn Chapter 4 you will learn about two generally accepted accounting principles, the revenue recognition principle and the matching principle. You will learn about differences between the cash basis and the accrual basis of accounting. The chapter will explain what adjusting journal entries are, why they are needed, and how to prepare them. Finally, you will learn how to prepare an adjusted trial balance and closing journal entries, as well as the different steps in the accounting cycle. REVIEW OF SPECIFIC STUDY OBJECTIVES
SO1. Explain the revenue recognition principle and the matching principle.