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Accounting Method

   Also found in: Wikipedia 0.20 sec.
Accounting Method
In terms of taxation, the method by which income and expenses are determined for taxation purposes.

Notes:
The two major methods in North America are cash and accrual accounting.


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It also states that although an accounting method may exist without a pattern of consistent treatment of an item, in most instances, consistent treatment of such item will be considered an accounting method.
On behalf of Tax Executives Institute (TEI), I am writing to urge that the Last-In, First-Out (LIFO) inventory accounting method be retained as part of the Internal Revenue Code.
The IRS audited the 1996 and 1997 returns and issued a deficiency notice, asserting Brookshire had to reduce its MACRS deductions for those years because it had changed its accounting method without obtaining prior consent.
 
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