The Accrual Method of Accounting records income and expenses when cash is received or spent.

The Accounting Method that conforms to accounting principles and rules is the Cash method.

The difference between the Cash and Accrual Method results from timing differences.

The Single Entry Bookkeeping System is used with the Accrual Method of Accounting.

If Inventories are a major part of a business, the Accrual Method of Accounting is normally required to be used.