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1- Matching concept
2- Revenue recognition
I totally agree with Dennis the accrual principle is the principle, and you have to choose between them either you go with cash method which is applicable in small business or accrual method when you have a considerable turn over.
so by definition the difference between these two methods is the timing of revenues and expenses.
does this help you> hope so.
I'm sorry I'm confused with the question. The Accrual Method of Accounting is the principle itself. Which means revenue are recognized when earned, not when cash is collected as in contrast with the "Cash Method", and expenses are recognized when incurred and not when payment of cash is paid. I hope that helps.
Thanks.
