Explain Why Allowing Management and Their Accountants to Choose Between

question 10

Essay

Explain why allowing management and their accountants to choose between various accounting methods when applying accounting standards is a good thing as opposed to requiring strict compliance with the application of specific methods.

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Definitions:

Property Taxes

Taxes levied by local governments based on the assessed value of real property.

Revenue Recognition

The accounting principle that revenue should be recorded when it is earned, regardless of when the payment is received.

Federal Grant

A sum of money given by the federal government to a state, organization, or individual for a specific purpose or project.