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 ...

The accrued expenses from the employees’ services for December will be omitted if the company’s income statement at the end of the year recognizes only salary payments that have already been made.

Accrued interest is recorded as an expense or as revenue on the income statement, depending on whether the interest is being ...

On a company’s income statement, also called its ... Companies generally use accrual accounting, under which payments and expenses show up when they’re earned or incurred.