A method used in order to recognized and understand expenses and revenues. Expenses are recognized within the same period as revenue and then the difference between both is used in order to calculate a net income for an individual or business.

Previous Terms: 1031 Exchange, 1035 Exchange, AARP, Abeyance, Abstraction Principle, Accelerated Amortization, Acceptance Credit, Acceptance of a Bill of Exchange, Accommodation Bill, Accommodation Endorser