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Lilit [14]
3 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]3 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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"Choose a previous employer, and describe your greatest contribution to the company." Prepare for an Interview: This is a common question asked in interviews.

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Once hired, a candidate will enter a 12- to 18-month period during which supervisors and mentors observe their performance to se
muminat

Probationary period

Explanation:

A probation is a period to see if a new hire (or new promoted worker) is suitable for their job or not. The person also can see if they like the new career or not. Depending on the company, the probation normally takes between 3 and 6 months.

The probationary period of the worker may be increased under some conditions. Extensions may be caused by a shift of duty or oversight leave took during the probationary period, etc.

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4 years ago
Which choice best describes differences in corporate decision-making
sesenic [268]

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C.WORKERS in the European union are usully move involved in corporate decision-makng

3 0
3 years ago
Gaden company sells a product for $50 per unit. Warialbe costs are $40 per unit. Calculate the contribution margin per unit, in
max2010maxim [7]

The Garden company sells a product for $50 per unit. Variable costs are $40 per unit.  50 % of the contribution margin per unit, in total, and as a ratio.

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( 610 * 50 ) - ( 610 * 25 ) = $ 15250

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Variable costs are directly related to the cost of producing goods and services, whereas fixed costs do not change with the level of production. Variable costs are commonly referred to as COGS, but fixed costs are not usually included in COGS. Fluctuations in sales and production levels can affect variable costs when factors such as sales commissions are included in the unit price of production. On the other hand, fixed costs still have to be paid, even if production slows down significantly.

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7 0
1 year ago
3x5=?<br><br> IRMAĞININ AKIŞINA ÖLÜRÜM TÜRKİYEM
Margarita [4]
The answer is 15. Hope this helps!
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3 years ago
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