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Lilit [14]
2 years ago
8

Differentiate between cash-basis accounting and accrual-basis accounting. Why is accrual-basis accounting the preferred method f

or most businesses? The Internal Revenue Service requires all companies with sales over $5,000,000 to use the accrual-basis of accounting for income tax reporting purposes. Why
Business
1 answer:
Umnica [9.8K]2 years ago
8 0

Answer:

Reason : To ensure constant flow of cash

Explanation:

<u>Accrual Basis of accounting</u> records transactions when they meet definition and recognition criteria of Assets, Liabilities,Equity, Expense and Incomes.

This is different from<u> cash-basis accounting</u> which records transactions at the receipt or payment of cash.

Because of <em>timing</em> difference, the cash transactions (cash basis) can happen a late than the day of recognition of the elements (accrual basis).

Hence Revenue services demand that income tax be calculated on accrual basis to ensure a constant flow of cash whenever an entity transact.

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The general increase in prices over time we pay for good and services is known as inflation. question 5 options: true false
Gala2k [10]

It is true that the general increase in prices over time we pay for goods and services is known as inflation.

<h3>What is inflation?</h3>

Inflation is the term used to describe an increase in the price of goods and services that households buy. It is determined by how quickly these prices fluctuate. Prices frequently rise with time, but they can also fall (a situation called deflation).

The main categories of inflation are as follows:

Demand-pull inflation: It explains how rising prices for products and services can result from increased demand. People will typically pay more for something if there is a shortage of it.

Cost-push inflation:  When demand-pull inflation is active, it frequently starts up. Businesses must raise their pricing as a result of rising raw material costs, regardless of market demand.

Built-in inflation: Employees may start requesting pay increases from their employers as demand-pull inflation and cost-push inflation take place. Employers risk experiencing a labor scarcity if they don't keep their pay competitive.

Built-in inflation occurs when a company increases employee wages or salaries while also trying to maintain profit margins by boosting prices.

To know more about inflation, visit:

brainly.com/question/28190771

#SPJ4

8 0
1 year ago
The typical soft drink can in the U.S. has a volume of 355 cm3. The two circular ends cost $0.0008 per cm2 each (because they ar
stepladder [879]

Answer:3cm radio for each circular end. 12.56cm height.

Explanation:

Those dimensions cost is 0.01261usd per can.

Lower radio or higher radio make can more expensive.

7 0
3 years ago
1. Which cleaning solvent is used for removing dust, grease oil, paint and others?
NemiM [27]

Ant:

s are drrrr

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3 0
2 years ago
You have just obtained a personal loan for a new home movie system under the simple interest method. You have borrowed $12,000 f
Vinvika [58]

Answer:ITS EITHER A OR E.

NOT SURE.

5 0
3 years ago
Car dealerships commonly measure website performance by tracking visits, visitor traffic, and ________, the amount of time per m
Leona [35]

Car dealerships commonly measure websites by tracking visits,

visitor traffic, and stickiness, the amount of time per month visitors spend on

their website.

Websites are generally used to advertise the goods and services of a

company and the website activity are usually measured through some

factors.

The factors include number of visits to the website and the amount of time

spent on them. The stickiness which is how friendly and enticing the

websites are is also taken into consideration.

Read more on brainly.com/question/25382532

5 0
2 years ago
Read 2 more answers
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