The income and expenses of a corporation for federal income tax purposes are referred to as what type of income?

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Maryjane Kent

Business

19 May, 06:43

The income and expenses of a corporation for federal income tax purposes are referred to as what type of income?

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Nyla · Answer 1

Accounting method, The method under which income and expenses are determined for tax purposes. Major accounting methods are the cash basis and the accrual basis. Special methods are available for the reporting of gain on installment sales, recognition of income on construction projects (the completed contract and percentage of completion methods), and the valuation of inventories.