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LSDefine

Simple English definitions for legal terms

accounting method

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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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m10
20:42
Get the ones that are dressed up then!
@JumpySubsequentDolphin: LITERALLY I also just applied to work at garage cuz 50% EMPLOYEE DISCOUNT
m10
20:43
Or legacy collection v1
JumpySubsequentDolphin
20:43
@SplitterusClitterus: GARAGE JEANS FIT ME SO WEIRDLY WHICH SUCKS BC THEYRE SO CUTE
m10
20:43
The cool thing about V2 was it was an infinitely generating collection so they would have never sold out but they ended it early cus of the bear market.
@JumpySubsequentDolphin: NAURRR i need to try them on to see. ive never owned anything from them exceot maybe a tank in middle school?? but ive been a longtime lurker/windowshopper/fan
JumpySubsequentDolphin
20:45
SPLITTY if their jeans fit on my thighs they’re too big on my waist!!! it’s so frustrating
NOOO THEIR WHITE GIRL JEANS actually idk why im surprised
THEYRE**** THAT WAS AUTOCORREXT I SWEAR
babycat
20:46
@m10: infinitely generating means it comes up with new pictures? or new copies of the same pictures?
JumpySubsequentDolphin
20:46
if you’re the slightest bit curvy they are so obnoxious. me and my Abercrombie curve love’s are good together
SHUT UP I LOVE ABERCROMBIE JEANS
m10
20:47
Did y'all see this from ararara last night? https://studicata.com/case-briefs/all/
THOSE FIT SOO GOOD. i desperately need new jeans tho i ahvent gone shopping in millennia so a discount would come in clutch
JumpySubsequentDolphin
20:48
I got these jeans from re/done on a crazy sale and I love them BYT RHEY HAVE FIVE BUTTONS
JumpySubsequentDolphin
20:48
I DIDNT REALIZE WHEJ I BOUGHT THEM BC THEYRE HIDDEN. LIKE INSTEAD OF A ZIPPER THEYREBALL BUTTONS
JumpySubsequentDolphin
20:48
what if I have to pee.
THATS SO FUNNY
i cant i would go crazy
JumpySubsequentDolphin
20:50
i need to know who decided to do that.
JumpySubsequentDolphin
20:50
omg im on a plane weeeee
the devil
youre on a plane??? LSD made the mile high club??
20:50
yo splitterus are you in school already
20:50
it says ur c/o 2027
JumpySubsequentDolphin
20:51
@SplitterusClitterus: HAHAH yes
ur user is hilarioussss and no i just graduated this may and am now applying ---also im out of messages so ill take a lil
20:52
roger dat. see u in heck
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