Describe why you think accrual accounting helps the reader of financial statements better understand a companys financial position, compared to cash basis accounting. Include in your answer a description of the matching concept and provide an example, taken from class lecture or assigned problems, of a transaction that honors the matching concept. It may help you to consider how net income is impacted by recorded revenue when it is earned rather than when cash is collected.

Content, concept application, and writing quality will impact your grade. There is no required minimum or maximum response length. Please use complete sentences and proper punctuation.