Generally Accepted Accounting Practices - What accounting method is accepted under GAAP?

Q: What accounting method is accepted under GAAP?

The only accounting method accepted by GAAP, or generally accepted accounting principles, is the accrual basis accounting method. This method applies the matching principle by recording revenue when it is earned and expenses as they occur.

Answer

Generally Accepted Accounting Principles (GAAP) alone recognize the accrual basis as an acceptable method of accounting. This approach takes use of the matching principle by keeping track of income as it comes in and spending as they happen.

Generally Accepted Accounting Practices - What accounting method is accepted under GAAP?

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