The accrual basis of accounting generally is preferred for the income statement and balance sheet because it more accurately matches revenue sources to the expenses incurred generating those ...

On the flip side, the company purchasing the good or service will record the transaction as an accrued expense ... revenue is recognized on the income statement as revenue, and an associated ...

That way, recording income can be put off until the next tax year, while expenses are counted right away. With the accrual method, income and expenses are recorded as they occur, regardless of ...

Accrued expenses are expenses that are recorded ... the unearned revenue gets recorded as revenue on the income statement. Below are some of the highlights from the income statement for Apple ...