Accrual Accounting Flashcards
0
Q
Examples of comprehensive basis of accounting other than GAAP
A
Tax basis
Cash receipts & disbursements accounting
1
Q
Modified cash basis of accounting
A
Certain accruals and/or deferrals are recorded for financial reporting purposes.
Ex: capitalization/amortization of long lived assets & the accrual for income taxes
2
Q
In F/S prepared on the tax basis, how should nondeductible portion of expenses be reported?
A
Included in the expense category in the determination of income.
