What Event Determines When a Cash or Accrual Method of Accounting

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The Answer is A shareholder who uses the accrual method of accounting reports the gain or loss using accrual concepts (i.e., the gain or loss is recognized when all the events have occurred that fix the amount of the liquidating distribution and when the shareholders are entitled to receive the distribution upon surrender of their shares). A shareholder who uses the cash method of accounting reports the gain when he or she has actual or constructive receipt of the liquidating distribution.

What Event Determines When a Cash or Accrual Method of Accounting

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What Event Determines When a Cash or Accrual Method of Accounting

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Correct Answer:VerifiedShow Answer

Correct Answer:
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