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  • Direct Method: 17.give at Least Four Principles of Direct Method?

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    M. Talaal Khalid
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    The direct method involves four principles: 1) Revenues are recorded in the period in which they are earned, regardless of when cash is received. 2) Expenses are recorded in the period in which they are incurred, regardless of when cash is paid. 3) Interest and taxes are not treated as expenses for income statement purposes. 4) The income statement format focuses on operating income and net income.

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    Direct method

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    The direct method involves four principles: 1) Revenues are recorded in the period in which they are earned, regardless of when cash is received. 2) Expenses are recorded in the period in which they are incurred, regardless of when cash is paid. 3) Interest and taxes are not treated as expenses for income statement purposes. 4) The income statement format focuses on operating income and net income.

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    42 views1 page

    Direct Method: 17.give at Least Four Principles of Direct Method?

    Uploaded by

    M. Talaal Khalid
    The direct method involves four principles: 1) Revenues are recorded in the period in which they are earned, regardless of when cash is received. 2) Expenses are recorded in the period in which they are incurred, regardless of when cash is paid. 3) Interest and taxes are not treated as expenses for income statement purposes. 4) The income statement format focuses on operating income and net income.

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    © All Rights Reserved
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    Direct method

    17.Give at least four principles of Direct method?

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