Depreciation and GAAP. A key example of the matching principle is depreciation. Let's say that a company pays for items of property, plant, and equipment in cash, it will record a reduction in ...

Discover why GAAP requires the accrual basis for accounting rather than the cash basis, and learn why it is important for stakeholders.

Accrual and Deferral Process and Timeline. The handling of prepaid expense deferrals and expense accruals will be consistent with the last nine fiscal years. ... Revenues are deferred based on the ...

Macy’s says an employee hid as much as $154 million in expenses The employee "intentionally made erroneous accounting accrual entries" to hide millions of dollars, Macy's said.