Asked by Javier Lopez on May 17, 2024
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Two main accounting principles used in accrual accounting are expense recognition and full closure.
Accrual Accounting
An accounting method where transactions are recorded when they are earned or incurred, not necessarily when cash changes hands, providing a more accurate financial picture.
Expense Recognition
A principle in accounting that dictates when costs are recognized as expenses in the financial statements, often aligned with the revenue they helped to generate.
- Acquire insight into the principles of revenue documentation and the corresponding matching of expenses as mandated by the matching principle.
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Learning Objectives
- Acquire insight into the principles of revenue documentation and the corresponding matching of expenses as mandated by the matching principle.
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