For a long time, accrual status system in accounting has been recognized by the people, and has become one of the principles of financial accounting.However, with the development and change of economic environment, the accounting information user's decision-making demand there have been some changes, many of the history of the accounting theory and method, but alsofor people to look at, the realization and raised anew by. The accrual basisand cash basis, because it became the basis for choice of accounting andfamiliar to the people. In essence, the two are the income and expense for the current period confirmation standard, is a basic principle of accounting orhypothesis. And, by using the matching principle, can produce differentresults. In this sense, accounting basis is not only a technical problem of the accounting policy choice, it is related to the distributionofwealth to incomebased. Therefore, accrual system and payment options, play a decisive role inaccounting terms. Early in the development of accounting history, has not appeared yet commercial credit and lending behavior, the realization is basedin the west, the double entry bookkeeping and, the shortfall in cash flow and cash flow.
