Question

which business is exempt from using the accrual basis for accounting

which business is exempt from using the accrual basis for accounting
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Accrual Accounting is based on one of the principles of accounting, namely matching principle. Under accrual accounting, revenues are reported when they are earned and expenses are reported when incurred, irrespective of the time of cash received or paid.

As per the latest amendments, any business organization with average annual gross receipts being less than $25,000,000 in the preceeding three years are exempt from using the accrual basis for accounting.
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Which business is exempt from using the accrual basis for accounting? A computer software company that...
Which business is exempt from using the accrual basis for accounting? A computer software company that has average gross annual receipts of $40 million over the last three years. A retail store that grossed $32 million in 2018, which was its first year in business. A construction contractor who does not have any outstanding accounts receivable at the end of the tax year. A toy store that just began business last year and had $1.2 million in gross receipts.
Which of the following is in accordance with generally accepted accounting principles? Accrual-basis accounting Cash-basis accounting...
Which of the following is in accordance with generally accepted accounting principles? Accrual-basis accounting Cash-basis accounting Both accrual-basis and cash-basis accounting Neither accrual-basis nor cash-basis accounting
What are the major rules for recording transactions using the accrual basis of accounting?
What are the major rules for recording transactions using the accrual basis of accounting?
Discuss the accounting policy implications of the cash basis and accrual basis of accounting and justify...
Discuss the accounting policy implications of the cash basis and accrual basis of accounting and justify which of the basis of accounting you will recommend for application in the preparation of financial statement in the public sector.
1)    What is the difference between "Accrual" Accounting and "Cash" basis accounting? 2)    What is the...
1)    What is the difference between "Accrual" Accounting and "Cash" basis accounting? 2)    What is the Accounting "Principle" that supports "Accrual" Accounting? 3)    Does the cash basis of accounting reflect future liabilities? 4)    Which method provides more consistent information? 5)    Which method is considered to be part of "GAAP"?
Compared to the accrual basis of accounting, the cash basis of accounting understates income during the...
Compared to the accrual basis of accounting, the cash basis of accounting understates income during the accounting period by the net increase of the           Accounts receivable      Accrued expenses payable           A.   Yes                       Yes           B.   Yes                       No             C.   No                        Yes           D.   No                        No           E.   Yes                       Yes
Governmental fund statements are prepared using: A. Economic resources measurement focus and modified accrual basis of...
Governmental fund statements are prepared using: A. Economic resources measurement focus and modified accrual basis of accounting. B. Current financial resources measurement focus and modified accrual basis of accounting. C. Current financial resources measurement focus and accrual basis of accounting. D. Economic resources measurement focus and accrual basis of accounting
Explain the difference between cash basis and accrual basis accounting. The student may define/explain and give...
Explain the difference between cash basis and accrual basis accounting. The student may define/explain and give example for both cash basis and accrual basis computation of accounting net income
Notate which of the following are either cash fro or accrual basis of accounting 1. purchased...
Notate which of the following are either cash fro or accrual basis of accounting 1. purchased an auto part worth 1k and paid 300. Business records only 300 as the expense 2. paid 250 for prepaid telephone expenses over the next month. Business records it in the current month 3. Purchased an auto part worth 1k and paid 300. Business records 1K as the expense 4. paid 250 for prepaid telephone expenses over the next month. Business records it in...
Explain the accrual basis of accounting and explain the reasons for adjusting entries.
Explain the accrual basis of accounting and explain the reasons for adjusting entries.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT