Accounting method, Managerial Accounting

Accounting Method is the method by which income and expenses are accounted for taxation purposes. The Internal Revenue Service needs taxpayers to select an accounting method that precisely reflects their income and to be reliable in their choice of accounting method from year to year. IRS approval is needed to modify methods. The chosen accounting technique is based on regulation and tax minimization strategies.

The two main accounting methods in North America are accrual and cash accounting. Cash accounting reports income and expenses in the year in which they are received and paid while accrual accounting reports income and expenses in the year in which they are gained and incurred. 

Cash, special, accrual and hybrid methods are all permissible choices if particular requirements are met.

 

 

Posted Date: 7/27/2012 1:45:42 AM | Location : United States







Related Discussions:- Accounting method, Assignment Help, Ask Question on Accounting method, Get Answer, Expert's Help, Accounting method Discussions

Write discussion on Accounting method
Your posts are moderated
Related Questions

The Nature of Accounting Accounting is process of recording, analyzing, summarizing, and interpreting financial (money-related) activities to allow individuals as well as org

How might a company use regression results to manage overhead costs?


Relevant costs and benefits for operating decisions: In operating decisions, concentration is on best use of existing capacity. Incremental analysis based on differential cost

Budget Preparation The organization's budget is ready following the acceptance and sanction of the decision packages. Once the budget of organization has been accepted manager

Question: (a) (I) The following equations relate to the market conditions for pullovers at a given point of time: Demand Function: Q d = 1200 - P Supply Function: Q s

Quasar Computers are the first all optical notebooks and their profit largely affects the manipulations in cost, price, total revenue and quantity changes. The market analysis show

Economies or Diseconomies of Scale The costs of a value activity are often subject to economies or diseconomies of scale. Economies of scale occur from the capability to perfo

Define role of Management Accountant The main role of management accountant is defined below. Planner e.g. budgeting Information provider e.g. operating statement