Accrual and cash basis Q The accrual basis of accounting matches revenues earned with expenses incurred. C The cash basis matches revenues received with expenses paid. It is not satisfactory for most businesses because it results in financial statements that are not comparable from period to period, except when the amounts of prepaid, unearned and accrued items are not material Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity6 Accrual and cash basis ⧫The accrual basis of accounting matches revenues earned with expenses incurred. ⧫The cash basis matches revenues received with expenses paid. It is not satisfactory for most businesses because it results in financial statements that are not comparable from period to period, except when the amounts of prepaid, unearned, and accrued items are not material