Tag: AC

Description and Definition of Accountant's Equation Accountant's Equation is the equation which is the basis of a balance sheet. It is as follows: Assets = Liabilities + Owners' Equity. Resources See Also Further Reading Accountant's Equation in the West's Tax Law […]

Description and Definition of Acquisition Debt Acquisition Debt is debt used to buy, build, or substantially improve a principal residence or second home and which generally qualifies for a full interest expense deduction. This is the technical term that Congress uses for what most of us call […]

Description and Definition of Accrual Method The Accrual Method is a business method of accounting requiring income to be reported when earned and expenses to be deducted when incurred – rather than reporting income when you receive payment and expenses when you pay them. However, deductions […]

Description and Definition of Accrued Interest Adjustment The Accrued Interest Adjustment is an adjustment that reduces your taxable interest income by any interest that you reported and paid tax on as it was earned. Resources See Also Further Reading Accrued Interest Adjustment in the […]

Description and Definition of Accountable Reimbursement Plan An Accountable Reimbursement Plan is an employer reimbursement plan or allowance arrangement established so that employees can receive business expense reimbursements tax free. The Accountable Reimbursement Plan must require […]

Description and Definition of Accounting Method An Accounting Method is a method used by a business or individual to keep its records. Most individuals and small businesses use the cash method, although businesses that maintain inventory are required to use the accrual method. Resources See […]

Description and Definition of Accelerated Cost Recovery System (ACRS) Accelerated Cost Recovery System (ACRS) was a statutory method of depreciation allowing accelerated rates for most types of property used in business and income-producing activities during the years 1981 through 1986. This […]

Description and Definition of Accelerated Depreciation Accelerated depreciation is a method of depreciation that produces larger deductions for depreciation in the early years of an asset's life versus spreading the cost evenly over the life of the asset, as with the straight-line […]

Description and Definition of Active Income Active Income is income from wages, tips, salaries, commissions, and a trade or business in which you materially participate. Resources See Also Further Reading Active Income in the West's Tax Law Dictionary Active Income in "A Dictionary […]

Actuarial Valuations Issue You may find information about Actuarial Valuations in this Tax Platform of the American Encyclopedia of Law.