Cash Basis Research Articles

Computerized Accounting for the Dental Office: Using Horizontal Applications General Ledger Software

Remember that computer software is designed for accrual accounting, whereas your business operates and reports income on a cash basis. The rules of tax law stipulate that professional practices may use the cash method of accounting, but if accrual accounting is ever used to report taxable income the government may not permit a switch back to cash accounting. Therefore, always consider the computer as a bookkeeper, not a substitute for a qualified accountant. (Your accountant will have readily accessible payroll and general ledger data available for analysis and tax reports, thanks to the magic of computer processing.) Accounts Payable reports are interfaced with the general ledger and are of interest for transaction detail, open invoice and cash flow analysis, and for a record of payments by vendor. Payroll reports, including check register and withholding detail are provided and interfaced with the general ledger.

The statement of changes in financial position: An alternative teaching approach

Abstract The Statement of Changes in Financial Position (SCFP) is an important financial statement for external users. From a teaching point of view, however, the development of the SCFP has not been understood clearly by many accounting students. In order to properly understand the SCFP using either the working capital basis or cash basis, students need a framework for analyzing the impact of various transactions on the Statement. This article provides the accounting instructor with an alternate method for teaching the relationship between any transaction and the SCFP.

Optimal Digital Switching Introduction Into the Local Network

This paper describes a local network evolution model for digital switching introduction and the associated algorithm used to determine a feasible optimal network evolution policy. Such a policy is defined by the type, location, and time of placement of digital switches and remote concentrators as well as the homing pattern, i.e., the assignment of concentrators to digital switches. In addition, the evolution policy is characterized by the mode in which the digital switch or remote concentrator is used. Two modes are considered here: 1) overlay where analog equipment is retained at a switching center, growth as well as potentially removed analog lines being served by digital eqmpment; and 2) replacement where analog switches are replaced by digital equipment. The basic cash flows considered in the economic analysis correspond to switching, trunking, and interface costs. Optimality is understood here in terms of minimizing an economic criterion such as the present worth of annual Charges (PWAC) or net present value (NPV). Results obtained using the optimization algorithm in conjunction with a real local telephone exchange network are also presented.

Analysing Public Expenditure: (I) Planning, Control and Price

ABSTRACTThis paper analyses the different cost bases in which public expenditure can be analysed as a policy problem related to the differing requirements of planning, authorising and controlling the various components of public expenditure. The analysis is applied to the United Kingdom, where in 1981 changes were announced in the method of making public expenditure decisions which had evolved over the previous two decades. The various components of public expenditure in the United Kingdom are described, and the decision-making process which led to the March 1981 Public Expenditure White Paper is outlined. The significance of the different price bases used in public expenditure (cash (at current or at expected prices), volume, cost, and constant) is then explored. The advantages and disadvantages for policy-makers of attempting to reduce the number of price bases used are analysed; it is shown that there is no cost-free route to reducing complexity. The significance of government's decision in 1981 to make greater use of the cash basis in decision-making is assessed. The analysis is applied specifically to the United Kingdom, but the issues raised are of policy relevance to the choice of price bases for public expenditure decision-making in any country in a time of inflation.(A second paper in a future issue of the Journal will examine the political purposes behind gross or net measurement, the earmaking of receipts, and the more precise relationships between figures used in the planning of public expenditure, in macro-economic analysis and forecasting and in Parliamentary and local control.)

ON MERCANTILE ACCOUNTING IN PRE-INDUSTRIAL IRAN

Iranian village accounting, which we studied by translating and analyzing the records of a trading house in the early twentieth century, was relatively unaffected by Western contact. The records were kept on a slightly modified cash basis, single-entry, with little distinction between business and personal transactions; this mirrors accounting practices in many “developing” societies. What was indeed unique was a distinctive set of numerical symbols, comprehensible to but a few initiates in each community, and whose primary goal was secrecy and privacy of the records. The system was used well before 1900 and is still in use in some rural areas today.

Integrated Cattle Feeding Hedging Strategies, 1972-1976

Most major crop and livestock prices became considerably more variable after 1972, resulting in increased producer price risk. Uncertainty in cattle feeding was compounded in that both input (feeder cattle and feed) and product (fed cattle) prices became quite variable after 1972. This uncertainty, accompanied by considerable losses in cattle feeding during the 1973-1975 period, has made hedging a more desirable option [1, 9]. Several studies have examined a short hedge on live cattle at the beginning of the feeding period as a means of reducing risk and increasing returns to cattle feeders. Selective hedging strategies generally reduced the variance of returns per head as well as improved returns during periods when cash feeding was unprofitable [2, 5]. Routine hedging of every pen clearly reduced profits during periods when cattle prices were rising while providing some protection during cash-feeding loss periods [6]. Feeding live cattle on a cash basis was more profitable than routine hedging prior to 1973 [6].

From MAP to FMS: Security On A Cash Basis

From MAP to FMS: Security On A Cash Basis

Financial Report for the Year Ended 31 December 1974

To the Officers and Councilors of The American Society of Tropical Medicine and Hygiene:We have examined the statements of assets, liabilities, and net worth (prepared on a cash basis with the exceptions noted below) of The American Society of Tropical Medicine and Hygiene and of the Tropical Medicine and Hygiene News as of 31 December 1974, and the related statements of cash receipts and disbursements for the year then ended. Our examination was made in accordance with generally accepted auditing standards and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances.The records of the Society consistently have been maintained, and its financial statements prepared, on the cash basis, with the exception of the investment in Tropical Medicine and Hygiene News and an allowance for depreciation. The current financial statements have been prepared on the same basis.

Managing subscription income

Better financial data promote better management of subscription income, and acctual basis accounting provides better data. Many small publishers depend on cash basis accounting and get systematic exaggerations of revenue and underestimates of expenses whenever costs, prices, or numbers of subscriptions rise. Subscription money paid in advance should not be fallow, but invested temporarily to generate additional revenue. Alternatively, this money may serve in emergencies to pay uncovered expenses. Subscription income goes further when cost-cutting ideas are sought regularly from the printer. It is speculated that the next round of increases in subscription prices may drastically cut the number of institutional subscribers to less popular journals. Some may not survive the change intact. Skillful handling of the business affairs of a small journal demands successful solutions to many problems. Several problems in managing subscription income are discussed in this paper: accounting methods, temporary investment, economical production, and planning price increases.

Financial Report for the Year Ended 31 December 1970

The accompanying audit summarizes the financial condition of the Society for the year ended 31 December 1970. The present report can be looked at with cautious optimism. It shows an increase in a) cash balance of $8,273.68 and b) net worth of $5,810.67. The slightly more favorable financial posture of the Society last year, compared with 1969, is evident in the “Schedule of Journal Income and Expenses” which shows an excess of receipts over expense of $1,037.06. Improved billing procedures instituted by the former Secretary-Treasurer with Allen Press have resulted in more prompt collection of bills from authors for extra pages, subvention, line revisions, and art work.George R. Healy, Ph.D. Secretary-Treasurer28 March 1971 To the Officers and Councilors of the American Society of Tropical Medicine and Hygiene: We have examined the statements of assets, liabilities, and net worth (prepared on a cash basis with the exceptions noted below of The American Society of Tropical Medicine and Hygiene and of the Tropical Medicine and Hygiene News as of 31 December 1970, and the related statements of cash receipts and disbursements for the year then ended.

Section 357 (c) and the Cash Basis Taxpayer

Section 357 (c) and the Cash Basis Taxpayer

AN ECONOMIC ANALYSIS OF FINANCING AN INTERSTATE HIGHWAY SYSTEM*

IN 1955 THE FINANCIAL needs of the Interstate Highway System were estimated to be approximately $27 billion. The 1956 FederalAid Highway Act had as its basic objective the satisfaction of this need. The act established a pay-as-you-go financial plan for the 41,000-mile Interstate System. For the first time in the financial history of providing highway services, the federal government earmarked highway-user revenue for highway expenditures. Congress expressed an intent to have the Interstate System completed by 1969. The pay-as-you-go financial plan has not been successful in the first four years of the program. The original appropriations enacted by Congress in 1956 have not been met. The Byrd amendment had to be suspended in 1958 to enable authorized appropriations to be made for fiscal years 1959 and 1960. Furthermore, there is little doubt that the highway trust fund will have a deficit balance in the fiscal years 1960 and 1961. Pay-as-you-go financing cannot accomplish the goal of a 41,000mile system in a thirteen-year period. The projected cost and revenue schedules have not been realistically conceived. Costs have risen about 37 per cent since the inception of the program. Highway-user taxes have had to be increased to keep the program on a cash basis. Motor-vehicle users are becoming cognizant of the financial burden. At a realistic cost estimate of $37 billion, the Interstate Highway System cannot be modernized in thirteen years on a pay-as-you-go financial plan. A go-before-you-pay program is not difficult to justify as a solution for the financial problem of the Interstate Highway System. However, the advantages of a bond program should be considered in the light of the current debt-management problems of the federal government and the economic costs of utilizing public credit. Interstate highway construction has not jeopardized the financial position of toll roads. Toll financing has been incorporated into the financial scheme of the Interstate Highway System. Opportunities

The Conceptual Framework and the Cash Basis

This paper is an attempt to say something in general terms about the problems of research in politics. The matter is a serious one to us professionally; but we are none of us sure that others take us as seriously as we take ourselves. Hence a certain embarrassment, from which I may sometimes take refuge in flippancy. The title of the paper (not chosen by me) has, I am afraid, that flavour.

Principles of Rate Making for Publicly Owned Utilities

This paper discusses three published sources of information on the determination of water rates. The first is a book on meter rates written by Allen Hazen that suggests the theory that the only logical and fair way of selling water is by measurement, and that this measurement should be done with water meters. This method involves a service charge or a minimum charge, with or without a water allowance, and a step rate in three phases, in which the unit cost of additional water decreases as the quantity used increases. The second publication discussed in this paper is a joint report on rates and rate structures published by the American Society of Civil Engineers (ASCE) and the American Bar Association (ABA). The report made specific recommendations regarding rate structures in the following areas: the need for dual‐rate structures, one rate for users and one for nonusers of facilities, the latter rate requiring the nonusers to pay for some of the cost of the installation of water facilities before they are used; allocating costs between fire protection and general water service; procedures which include a minimum or service charge and three or more steps of quantity rates; a real demand charge be collected in the first block of the output or commodity rate that would be a major portion of the capacity charge; a diminishing quantity of the fixed charges should be collected in the subsequent rate blocks, but noted that no fixed rules should be established for the division into the various blocks; and, the need for a satisfactory type of demand meter, and suggested that in the absence of such a meter, special rates be established for special customers. The third source for determining water rates is AWWA's committee report, “The Determination of Water Rates Schedules”, published in 1953, and which now has become AWWA's manual on water rates. The objective of the report was to point out the basic elements involved in rate‐making, including alternate procedures, and thus permit judgment to be exercised in meeting the local conditions and laws. The report discussed the two principal classifications of revenue determination: the utility basis, used by privately owned and operated companies and by public departments in the eight states that regulate agencies; and, the cash basis, generally used by publicly owned and operated utilities. The AWWA report clearly outlined the three basic cost classifications in use in the United States for some time which are used in the demand basis method, including: customer costs, which include such items as maintenance of service, maintenance of meters, meter reading, billing, and collection of accounts; capacity costs, which arise from the providing plant and keeping it in readiness to serve; and, commodity costs, which vary directly with the amount of water produced.

Fair Market Value of Deferred Payment Contract Held Includible in Gross Income of Cash Basis Taxpayer in Year of Execution of Contract

Fair Market Value of Deferred Payment Contract Held Includible in Gross Income of Cash Basis Taxpayer in Year of Execution of Contract

Taxation. Cash Basis Taxpayer May Deduct Prepaid Insurance Premiums as Business Expense in Year Paid

Taxation. Cash Basis Taxpayer May Deduct Prepaid Insurance Premiums as Business Expense in Year Paid

Income Taxes. When Items Become Income or Are Deductible. Agent on Cash Basis Taxed When Commissions Received under Contract Which Postpones Their Receipt

Income Taxes. When Items Become Income or Are Deductible. Agent on Cash Basis Taxed When Commissions Received under Contract Which Postpones Their Receipt

THE FINANCIAL POLICIES OF CHURCHES

THE EFFECTIVENESS OF ANY ORGANIZATION is dependent at least in part on the soundness of its financial administration. Churches are no exception. During the depression of the early thirties, many churches defaulted on their financial obligations. Difficulties for the churches and skepticism among financial groups were engendered by these embarrassments. Since I945, the churches of America have spent hundreds of millions of dollars for expansion purposes and have borrowed part of the funds for these programs. Churches of one denomination alone invested $50,000,000 in I947, $60,ooo,ooo in I948, and $90,000,000 in I949.1 The perplexing question of just how much of the expansion should be financed by loans remains unanswered. For a church to refuse to make any investment except on a strictly cash basis or for a financial firm to decline to make any loans to churches is begging the question. Where, then, do we draw the line? Will churches find themselves in financial difficulties again because they have incurred too much indebtedness? An attempt to answer these and related questions is the purpose of this study.

An Independent Farm in Cuba

and bohio-dwellers, there is a small group of owner-operators of the small independent farms. Distinguishing features of such a farm are: (a) a unit of land large enough to support a family on a relatively decent standard of living, (b) a varied enough production to supply most of the basic needs of the family, (c) a market crop to furnish a basic cash income, and (d) an owner actually in residence on the farm and performing the farm work. Such small independent farms are relatively few in Cuba, tending either to be prevented or to be crowded out by the foreign corporation and the domestic aristocracy which have first call on almost all the better grades of land. Yet most Cuban students of the

Income Taxes. When Items Become Income or Are Deductible. Employer on Cash Basis Not Entitled to Deduction for Salary Constructively Received by Employee

Income Taxes. When Items Become Income or Are Deductible. Employer on Cash Basis Not Entitled to Deduction for Salary Constructively Received by Employee