1.

Accrual-Short-term liabilities (such as interest, taxes, utilitycharges, wages) which continually occur

during anaccounting period but are not supported by an invoice or a written demand for payment. When
preparing financial statements for that accounting period, such liabilities are estimated on the basis
of experience (based on previouspayments). Similar increases in the assets of the firm(which may also
continually occur) is not taken into accountin order to comply with accrual basis accounting rules.
2. accounting period Period for which a firm prepares its internal or externalaccounts; the period covered by
the financial statements. For internal accounts, it may be a month or a quarter; for external accounts it is
normally a period of 12 months.
3. Accounting concept that the operating cycle of a firm can be divided into distinct accounting
periods (a month or aquarter, for example) of relatively short lengths for which
accounting information can be collected, matched, and reported in a timely manner
4.  Interim Period
5.  Revenue Principle
6.  Matching Principle-Fundamental concept of accrual basis
accounting thatoffsets revenue against expenses on the basis of their cause-and-effect relationship.
It states that, in measuringnet income for an accounting period, the costs incurred in that period should
be matched against the revenue generated in the same period. See also accounting concepts.
7.