BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Accrual accounting is an accounting method where revenue or expenses are recorded when a transaction occurs vs. when payment is received or made. The method follows the matching principle, which says that revenues and expenses should be recognized in the same period.

Detailed explanation-2: -The matching concept states that expenses should be matched with revenues of the same period. Matching does not mean the amounts being same, it only means expenses and revenues should be of the same period.

Detailed explanation-3: -Accrual-Basis Accounting Transactions recorded in the periods in which the events occur. Revenues are recognized when services performed, even if cash was not received. Expenses are recognized when incurred, even if cash was not paid.

Detailed explanation-4: -Revenues and Expenses Rather, revenue is the term used to describe income earned through the provision of a business’ primary goods or services, while expense is the term for a cost incurred in the process of producing or offering a primary business operation.

Detailed explanation-5: -The matching principle is an accounting concept that dictates that companies report expenses at the same time as the revenues they are related to. Revenues and expenses are matched on the income statement for a period of time (e.g., a year, quarter, or month).