What is a good response to the Information below?

Opinion...

The matching principles in accounting is when revenue is matched to expenses during the period that they happen. Prepaid expense are accounted for by paying and recording the item or service as an asset. Having a prepaid phone service or a cable account would be a good example of this. The phone and/or cablecompany will provide the service and bill their customers for the service provided for the following month. The company will record the payment for services used prior to the date of the service isused. The difference between cash basis accounting and accrual basis is in cash basis revenue is recored only when payment is received. Accrual basis is recorded as revenue onlywhen service takes place.