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

Question

Quizplus · Accepted Answer

Just because an accounting method is consistent with GAAP (Generally Accepted Accounting Principles) does not necessarily mean that it will be acceptable for tax purposes. The IRS may have specific requirements or rules for tax accounting that differ from GAAP.

The Fact That the Accounting Method the Taxpayer Uses to Measure