Definitions for "Accounting Method"
Any number of approaches for calculating the income of an entity. Usually applied to the general means of recognizing income and expenses, e.g., cash or accrual. But it can also apply to method of keeping inventories, etc.
Accounting method refers to how individuals or businesses keep their financial records. A common accounting method for both individuals and small businesses is the cash method, even though businesses with inventory are required to use the accrual method. See also "Accrual Method" or "Cash Method."
The method used to account for income and expenses for tax purposes. Most taxpayers use either the cash method or an accrual method. The accounting method is chosen when you file your first income tax return. To change accounting methods after that, generally IRS approval is required.
Keywords:  rules, set
a set of rules used