InterviewSolution
Saved Bookmarks
| 1. |
if a firm taken into acccount advance received from a customer as income it violates which of the income concept? |
|
Answer» Matching of income and expense. Taking the advance into a trust ACCOUNT and drawing on the deposit as expenses are incurred keeps the picture CORRECT. MONEY deposited in a trust account is not taxable income until it is withdrawn for deposited in the regular business account. This is generally directed at CASH basis accounting as opposed to Accrual accounting. |
|