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What are the different bases of accounting?
There are 3 basis: Cash basis, Accrual basis and Tax basis Free information online at www.etcwa.com
What are the 3 broad areas of accounting?
It is normally divided into three broad areas: auditing, financial/tax and management accounting.
Different fields of accounting?
auditing acctg. budgetary acctg. management acctg.acctg.book payroll financial acctg. cost tax acctg gov.acctg
Is profit from the sale of a tax-free car - gifted originally for one dollar - taxable as income?
Well, your right in understanding that anything sold at a profit from your tax basis would create gain income, including a car or such. And I'm sure all of us are alert to, and report that faithfully. It's complicated by the fact most people may not track their basis (especially tax basis) on items of personal property. But, as your question acknowledges the acquisition was done as a qualified gift, (presumably by parents or such), virtually all of those transfers include the recipient getting a "stepped up basis", that is the basis at market value at time of transfer to you. That is presumably higher (as the car is worth lesds now) than the amount your selling it for. Hence, no income. (In fact a loss on sale of a personal asset, which cannot be used).
Why are financial accounting standards important?
These standards are important because external financial reporting can demonstrate financial accountability to the public. They are the basis for many legislative and regulatory decisions, as well as investment and credit policies.
What are the different bases of accounting?
There are 3 basis: Cash basis, Accrual basis and Tax basis Free information online at www.etcwa.com
How does management accounting differ from cost accounting?
Management accounting includes both financial and cost accounting, tax planning and tax accounting. Cost accounting, on the other hand, does not include financial accounting, tax planning and tax accounting.
Is a change from the cash basis to the accrual basis a change in accounting principle?
Yes it is a change in accounting principle. And a rather drastic change. Accrual Basis of accounting is the most fundamental accounting assumption which is regarded throughout the world. Thus if a person either departs or adopts the accrual basis its a change in accounting principle.
Accrual basis accounting vs Cash basis Accounting?
Under accrual basis of accounting, transactions are recorded when they actually occurred while in cash basis accounting transactions are recorded when actual cash is paid. Accrual accounting follows the matching concept according to which all revenues in one period should be match with expenses.
Where can you find information on tax accounting?
Information on tax accounting can be found at Thomson Reuters, Turbo Tax, H&R Block, Education Portal, Quartz, Investopedia and Mak Tak Tax Accounting.
What has the author Charles Heinrichs Langer written?
Charles Heinrichs Langer has written: 'Examination coaching course' -- subject(s): Accounting, Problems, exercises 'Walton federal income tax accounting and procedure, 1938' -- subject(s): Accounting, Income tax 'Federal tax course' -- subject(s): Accounting, Income tax, Tax accounting
What is the tax treatment for bad debts?
If your business accounting system is on accrual basis, you can claim a deduction in your tax return to claim any bad debts so that you don't pay tax on the income you didn't actually end up receiving. This can only be done after you have taken all the necessary steps to get the money owed to you. If your business accounting system in on cash basis you wouldn't have declared the debt previously as income so nothing is affected, no deduction needs to be made.
What are accounting conversion and concept?
accounting concept are the basic knowledge of accounting on which basis monetry transation are made in accounting book.
Is the matching concept related to the cash basis of accounting or the accrual basis of accounting?
Matching concept is the basis of accrual accounting system under which all expenses to earn revenue should be match within same fiscal year so it is part of accrual accounting system
What is types of accounting?
In Accounting, there are two types. There is Cash Basis Accounting and Accrual Basis Accounting. With Cash Basis, transactions are considered to have happened when cash is exchanged, ie. a cash sale or cash payment. In the Accrual Basis, transactions are considered when the event happens. For example, a sale happens when an invoice is given. A debt happens when a bill is received.
What is cash basis of accounting?
a system that recognizes revenue and expenses on a cash basis, not an accrual basis
Is cash basis accepted in accounting?
Yes cash basis is acceptable accounting concept in those industries or companies where all sales and purchases are done on cash basis and nothing on accrual basis but it is still not recommended method.
