The Generally Accepted Accounting Principles (GAAP) Accrual Rules are a set of procedures and rules that businesses must abide by when recording financial transactions. These rules have been created to ensure accuracy and consistency in the way financial accounts are maintained, as well as to guard against fraud. The Accrual Rules state that transactions must be recorded in the period they occur, not necessarily when cash is exchanged. This gives an accurate picture of a company’s financial health at any given time. It also ensures that expenses, such as wages or supplies, and revenues, such as payments received, are reported with the proper period of time. Following these rules helps businesses maintain an accurate record of their finances and report on their performance over time.