AccountingBLOCK - Accounting Forums - View Single Post - Using accrual method of accounting for tax purposes

bizark · 03-08-2008, 10:58 AM

Accrual method is the most accepted method of accounting and it is as per GAAP. It is something based on conservative principle. Provide for all anticipated losses and do not account income till received. If you provide for anticipated losses, it just makes you prepare for the worst case scenario.

03-08-2008, 10:58 AM	#2 (permalink)
bizark Status: Getting feet wet Join Date: Mar 2008 Location: USA Posts: 45	Accrual method is the most accepted method of accounting and it is as per GAAP. It is something based on conservative principle. Provide for all anticipated losses and do not account income till received. If you provide for anticipated losses, it just makes you prepare for the worst case scenario.