The accounting concepts that underlie the accrual system of accounting are

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The accrual system of accounting is based on the concepts of revenue recognition and matching. Revenue recognition refers to the recognition of revenue when it is earned, regardless of when payment is received. Matching refers to the matching of expenses incurred in generating that revenue with the revenue it generates. This allows for a more accurate representation of a company's financial performance over a given period of time. While debits and credits are used within the accrual system, they are not accounting concepts that underlie the system. Debits equal credits is simply the basic principle of double-entry accounting. Deferrals are more closely associated with cash-basis accounting.

The Accounting Concepts That Underlie the Accrual System of Accounting