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Unformatted text preview: 3 Tax Accounting Methods Tax Accounting Methods ■ Cash Basis: ■ Generally, recognize income when payments are received, recognize expenses when paid. ■ Accrual Basis: ■ Generally, recognize income when earned and expenses when incurred. Accrual method must be used for sales and COGS when inventories are income producing...
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- Spring '11
- Accrual Basis, Taxation in the United States, basic income tax, taxpayers income tax