Unit 4 Reading Activities Plus Questions

Read the following text and then complete the activities that follow.

Tax Accounting vs GAAP

In the 21st century many laws and regulations have been standardized but there are still some standards which are specific to each country.

If you work in accounting in the US you will have heard of and understand tax accounting, but your European counterpart will have no idea what it is. Unlike a lot of countries where the generally accepted accounting principles (GAAP) is the only method for calculating tax, accountants in America have two options; tax accounting and GAAP.


Create a free account to continue or login

"We hope you have noticed that this site is not like the others. It is free from advertising, spyware, and annoying clickbait. Therefore, we rely 100% on our user base for financial support. In fact, this site would not exist without the support of our hundreds of loyal subscribers. Your support begins with a free registration. Thank you."

Not convinced? Read our About us or Clients pages for more info, including testimonials, case studies, and more.

Quiz: Reading Questions

1. Fixed assets usually make up a significant amount of the depreciation.
2. Net earnings and taxable income are part of the revenue.
3. Accrual basis accounting has to be consistent with the GAAP.
Please register and/or login to answer these questions.