The fact that the accounting method the taxpayer uses to measure income is consistent with GAAP does not ensure that the method will be acceptable for tax purposes.

Question

Quizplus · Accepted Answer

Just because the accounting method is consistent with GAAP (Generally Accepted Accounting Principles) does not mean it conforms to the tax law requirements of the Internal Revenue Code or IRS regulations. The IRS has specific rules for recording income and deductions for tax purposes, which may differ from GAAP standards.

The Fact That the Accounting Method the Taxpayer Uses to Measure