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
What does it mean when we say consistency is the central feature of economic rationality?

Conceptual understanding: defining in identifying relevant information Business application - Dave burgers is in the fast food restaurant business. One component of it's market

Kaizen and management Management has two major components: 1) Maintenance 2) Improvement. The aim of  the maintenance function is to maintain current technological man

Absorption cost Absorption, or full cost systems, transfer the full cost of the supplying department to the receiving department. Where a profit is to be allowed to the supplyi

Firms need cash to invest in inventory, receivables and fixed assets and to create payments for operating expenses, so as to increase earnings and sales and make sure the smooth ru

Advantages of incremental budgeting a) The budget is stable and change is gradual b) Managers can operate their departments on a steady basis c) The system is relatively

Explain the Methods of pricing The following methods are used for intra company transfer pricing: 1) Total cost method: transfer is made at absorption cost which is the t

SENSITIVITY ANALYSIS OF EOQ MODEL Sensitivity Analysis is regarded with the manner in which those results of solutions change in response to change in model parameters.

COST-VOLUME PROFIT (C-V-P) ANALYSIS INTRODUCTION You can employ cost-volume-profit analysis to examine the natural relationship among cost, volume, and profit in pricing decision

Advantages of Imposed budgets Advantages: They increase the probability that the organization strategic plans are incorporated into the planned activities. They