Accrual Basis: The accrual basis is an accounting method where revenue and expenses are recognized when they are earned or incurred, regardless of when cash is received or paid.
Revenue Recognition Principle: The revenue recognition principle states that revenue should be recorded when it is earned, not necessarily when cash is received.
Statement of Cash Flows: The statement of cash flows is a financial statement that reports the cash receipts and cash payments of a company during a specific period.