Accrual accounting ... audited financial statements or filings under GAAP or IFRS. The method of accounting can significantly affect tax liabilities. Under cash accounting, income is not taxable ...

Prepaid expenses aren’t included in the income statement per generally accepted accounting principles (GAAP). In particular, the GAAP matching principle requires accrual accounting, which ...

Accrued interest is recorded as an expense or as revenue on the income statement, depending on whether the interest is being paid or received. Accrued expenses are a type of accrued liability and ...