Legal Dictionary of Pakistan
Quick lookup for English, Urdu, and Latin legal terms used in Pakistani jurisprudence.
accounting method
A system for determining income and expenses for tax purposes.
accrual accounting method
An accounting method that records entries of debits and credits when the liability arises, rather than when the income or expense is received or disbursed.
accrual accounting method.
See ACCOUNTING METHOD.
capitalization accounting method
See ACCOUNTING METHOD.
capitalization accounting method.
A method of determining an asset's present value by discounting its stream of expected future benefits at an appropriate rate.
cash-basis accounting method
An accounting method that considers only cash actually received as income and cash actually paid out as an expense.
completed-contract accounting method
See ACCOUNTING METHOD.
cost accounting method
The practice of recording the value of assets in terms of their cost. - Also termed cost accounting
direct charge-off accounting method
See ACCOUNTING METHOD.
equity accounting method
A method of accounting for long-term investment in common stock based on acquisition cost, investor income, net losses, and dividends.
fair-value accounting method
See ACCOUNT. ING METHOD.
fair-value accounting method.
The valuation of assets at present actual or market value.
installment accounting method
See Ac COUNTING METHOD.
installment accounting method.
A method by which a taxpayer can spread the recognition of gains from a sale of property over the payment period by computing the gross-profit percentage from the sale and applying it to each payment.
physical-inventory accounting method
See ACCOUNTING METHOD.
purchase accounting method
See ACCOUNTING METHOD.
purchase accounting method.
A method of accounting for mergers whereby the total value paid or exchanged for the acquired firm's assets is recorded on the acquiring firm's books, and any difference between the fair market value of the assets acquired and the purchase price is recorded as goodwill.