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


Controlling Things hardly go exactly as planned, and management should make a concerted effort to the monitor and adjust for their deviations. The managerial accountant is the

The Incredible game theorist Mr. Nash's work needed refining. First, it applies to games played only once, or in which players move simultaneously. But virtually all interestin

critically examine the current cost accounting for price level changes

The requirement for working capital fluctuates according the level of inventory, production, debtors and creditors etc. The working capital needs are not uniform during the year be

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

Given the persistent problem with starvation in some parts of the world, and the anticipated population growth in developing nations, do we need genetically modified foods? Is it r

relevance to business owners, employees and public?

???? ????? ???? ???? ??????? ???? ??????? ??????? ???. ???? ?????? ?????? ?????: (?) ??????? ??????? ??????? ????? ?? ????? ????? ?? (?) ???? ??????? ??????? ?? ???? ???? ????? ?