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Essay

Small Business Accounting Methods

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Issue:

Business

 

Written by:

John N

 

Date added:

February 24, 2013

 

Level:

University

 

Grade:

A

 

No of pages / words:

4 / 1060

 

Was viewed:

9339 times

 

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Essay content:

Large business use the cash method of accounting, but it is better for small business use the hybrid method. When using the hybrid method, Sales and COGS are recorded by the accrual method and operating expenses are reported by the cash method. For this reason, inventories will be understated at any given time, because they are not actually paid for when they are received...
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For this reason, inventories will be understated at any given time, because they are not actually paid for when they are received. If the IRS notices a problem with how the business is accounting for inventory, it will open their eyes for further exploration. Another important tax factor is the way business report automobile mileage deductions...
displayed 300 characters

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