Learn when and how revenue is recognized in accrual accounting, even without cash receipt, following GAAP. Discover the ...

Accrual accounting is one of the primary accounting methods and is based on the matching principle, which dictates that revenues and their associated expenses be recorded in the same accounting period ...

The accrual and cash methods of business accounting are the two most popular methods of managing business income and expenses. These accounting practices provide businesses differing advantages ...

In Chief Counsel Notice CC-2001-010, the IRS announced a change in its litigation position that certain taxpayers must use the accrual method of accounting. The IRS previously had told many cash-basis ...

An accrual rate is the interest percentage added to the principal of a financial product between payments. Learn how it applies to bonds, mortgages, and vacation time.

There are two main types of business accounting methods: cash and accrual. In general, small-business owners have the option to choose which one to use. Both methods function to keep track of income ...

Over the summer the IRS released some accounting for contracts tax tips, which provides a nice summary of questions we frequently get asked. What is an accounting method? Every taxpayer reports income ...

As a new small-business owner you must make a decision between using accrual or cash accounting methods. Regardless of which method you choose, you must use it consistently. The accrual accounting ...