ConceptsofAccrual-basisAccountingTime-period ConceptRevenuePrincipleMatching Principle
Concepts of Accrual-basis Accounting Time-period Concept Revenue Principle Matching Principle
The Time-Period ConceptBusinesses need regular progress reportsso accountants prepare financial statementsfor specific periods and at regular intervalsMonthlyQuarterly
RevenuePrincipleThe revenue principle governs two things:When to record revenue and.the amount of revenue to record
RevenuePrincipleAir& SeAir& SeaTravel, InrTravel,ntIplantohaveyouMarchi2AD12makemytavearangementsphetseShuafionlShuafion?NotransarticnhasotcuedThe cient has taken atip arranged-Do NotRecordRevenlleAi & Sea Travel.-Retord Reven
Tfe MaterlifigPrificipieIt is the basis for recordingexpenses and ineludes two steps:Identify all the expenses incurredduring the accounting period.Measure the expenses and matchexpenses against revenues earned