Purchase Solution

Why is modified accrual accounting necessary?

Not what you're looking for?

Ask Custom Question

Why is modified accrual accounting necessary?

Purchase this Solution

Solution Summary

In a 235 word explanation, the solution explains the use of modified accrual with examples for better understanding.

Solution Preview

Modified accrual is a method of accounting often used in tax reporting. It is not GAAP and would therefore require noting in the opinion of a financial statement. That is not to say it isn't acceptable for financial statements, but simply that any deviations from GAAP must be noted in the opinion.

To review, modified accrual means that not all the items in the ...

Purchase this Solution

Free BrainMass Quizzes

This tests some key elements of major motivation theories.

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

Operations Management

This quiz tests a student's knowledge about Operations Management

Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.