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A corporation using the accrual method of accounting must observe a special rule in dealing with cash basis related parties. This rule is most often
A corporation using the accrual method of accounting must observe a special rule in dealing with cash basis related parties. This rule is most often encountered when an accrual method corporation deals with a cash method individual who owns (directly or indirectly) more than 50 percent of the corporations stock and accrues this individual a bonus at year-end but makes the payment in January of the following year. What is the special rule?
A corporation using the accrual method of accounting must observe a special rule in dealing with cash basis related parties. This rule is most often encountered when an accrual method corporation deals with a cash method individual who owns (directly or indirectly) more than 50 percent of the corporations stock and accrues this individual a bonus at year-end but makes the payment in January of the following year.
What is the special rule?
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Managerial Accounting
Authors: Susan V. Crosson, Belverd E. Needles
8th Edition
9780618777174, 618777180, 618777172, 978-0618777181
