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LSDefine

Simple English definitions for legal terms

accounting method

Read a random definition: rectification of register

A quick definition of accounting method:

An accounting method is a way of keeping track of a company's money for tax purposes. There are different types of accounting methods, including the accrual method, which records income and expenses when they happen, and the cash-basis method, which only counts money that has been received or paid out. Other methods include cost accounting, fair-value accounting, and percentage-of-completion accounting. Each method has its own rules and benefits, and companies choose the one that works best for them.

A more thorough explanation:

An accounting method is a system used to determine income and expenses for tax purposes. There are different types of accounting methods, including:

  • Accrual accounting method: This method records entries of debits and credits when the liability arises, rather than when the income or expense is received or disbursed. For example, if a company provides services to a client in December but doesn't receive payment until January, the income is recorded in December using the accrual accounting method.
  • Cash-basis accounting method: This method considers only cash actually received as income and cash actually paid out as an expense. For example, if a company provides services to a client in December but doesn't receive payment until January, the income is recorded in January using the cash-basis accounting method.
  • Percentage-of-completion method: This accounting method recognizes revenue gradually during the completion of a contract. For example, if a construction company is building a house for a client, revenue is recognized as the project progresses and milestones are met.

These accounting methods are important for businesses to accurately report their financial information for tax purposes and to make informed decisions about their operations.

accounting for profits | accounting period

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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