Hybrid Method of Accounting
Hybrid Method of Accounting
A combination of accounting methods, usually of the cash and accrual methods.
References in periodicals archive
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In HCA, the taxpayer had applied a hybrid method of accounting, under which the income and expenses attributable to the sale of pharmaceutical products and supplies was reported under the accrual method, and the income and expenses attributable to physician and other hospital services was reported under the cash method of accounting.
The Tax Court ruled that Hospital Corporation of America properly reported its taxable income using a hybrid method of accounting -- combining the cash and accrual methods -- and that the IRS abused its discretion in changing the hospitals to an overall accrual method.
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