Question

The __________ - method of tax reporting provides more flexibility to time income and deductions by accelerating or deferring payments

Answer 1

The Cash Method

Step-by-step explanation:

The cash accounting method records income when cash is received and expenses incurred in cash. As the basis of accounting, income is deducted when expenses are deducted regardless of the alternative method of accounting for income items when it is earned.

Two main advantages of the cash method of calculation:

(1) The cash method comes with faster or delaying payments and gives businesses more flexibility in terms of withdrawals

(2) ease of bookkeeping in accounting.