Accounting is designed to collect, record and then compile financial information into more accessible formats intended for its end users. Furthermore, accounting is planned to be a language that can be used to communicate financial information to its users in an efficient and effective manner. Accrual basis is a set of guidelines designed to guide certain crucial concepts in accounting, in the appropriate time when record deals. Accruals concept is very similar to the matching concept. Accruals basis of accounting ensures that expenses are “matched” with the revenue earned in an accounting period. For instance, a company obtained its rent and paid RM100,000 on February 2 as annual rent. It does not record the payment as an expense because the building is not yet used. Instead it records the cash payment as prepaid rent.