Article Abstract:
Many taxpayers are unaware of tax provisions that allow for the reduction or deferral of tax liabilities. Though these methods lack the glamour of tax shelters, the results are usually certain. Generally a consistent accounting method should be followed for tax purposes, but the start of a new or separate business allows for another free choice. The cash method is not limited to small taxpayers. Accrual taxpayers often overlook deferral opportunities. The hybrid method can be used with separate and distinct businesses. LIFO can offer tax savings in periods of inflation and can include all or part of the inventory.
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Article Abstract:
The efficient market hypothesis (EMH) has accounting implications. Security prices do not fully reflect all information available, but probably near all information publicly available. Capital market research (CMR) examines the effect of information on stock prices. Research suggests a strong correlation between stock price movements and accounting income and that prices seem to be based on economic reality. Accountants should be aware of EMH and CMR because they may affect client counseling, disclosure, evidence for damage claims and for their use in standard setting.
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Article Abstract:
Volunteers handle much of the work at churches and they need an accounting system that can be handled by people of little experience. A budget may be a useful tool to allocate spending and to give more substance to annual pledges. The receipt of cash is the major internal control problem and should be handled by at least two people. Church financial statements should be designed to be informative for the laymen and might include a comparative receipt and expenditure statement or a cash basis statement of changes in financial position. Exhibits are included.
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