GAAP requires the use of accrual accounting.

Name: GAAP requires the use of accrual accounting.
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GAAP (Generally Accepted Accounting Principles) requires the use of accrual accounting. Accrual accounting records revenues and expenses when they are incurred, rather than when cash is exchanged. This method provides a more accurate representation of a company's financial position and performance.

GAAP Requires the Use of Accrual Accounting