dis - transaction occurs rather than when payment is made...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
The two principles are the revenue recognition principle and the matching principle. What Does Accrual Accounting Mean? An accounting method that measures the performance and position of a company by recognizing economic events regardless of when cash transactions occur. The general idea is that economic events are recognized by matching revenues to expenses (the matching principle) at the time in which the
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: transaction occurs rather than when payment is made (or received). This method allows the current cash inflows/outflows to be combined with future expected cash inflows/outflows to give a more accurate picture of a company's current financial condition. the two principles are the revenue recognition principle and the matching principle...
View Full Document

This note was uploaded on 05/09/2010 for the course ACCT 212 taught by Professor Mengueme during the Spring '10 term at DeVry Chicago.

Ask a homework question - tutors are online