What Is a Recasted Profit & Loss?
Small Business » Finances & Taxes » Profit & Loss Statements » What Is a Recasted Profit & Loss? Vincent Murphy Business Broker Related Articles 1 Matching Concept Vs. Accrual Accounting 2 The Accrual Method of Accounting for Nonprofits 3 How to Determine Assets and Expenses for Accrual and Cash Accounting 4 Does a Cash Basis S Corporation Have Retained Earnings? Many small business owners use cash accounting instead of accrual accounting. In addition, they often run a number of personal expenses through their companies or ratchet up their contributions to company retirement accounts to increase their retirement savings and reduce their current taxes. Because of this, it is sometimes necessary to recast earnings. When you recast earnings, you adjust the earnings to reflect accrual methodologies or remove the impact of the additional expenses. Recast To recast is to cast anew or to reconstruct. When you recast earnings, you ...
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