accounting






 

Question by  ibba602 (9)

In accounting, what is adjusted basis?

 
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Answer by  sudip (14)

Accounting can be done in two ways- cash basis and adjusted basis. Adjusted basis accounting takes the matching principle and revenue recognition principle into consideration. When an expense is due it will be written even though the payment is not yet made. Again when an income is due it has to be shown even though cash is not yet received.

 
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