All public U.S. companies are required to prepare their financial statements as set out by the Financial Accounting Standards Board (FASB), whose standards are generally rules-based. FASB develops ...

Cash basis accounting records revenue and expenses ... before the cash transaction has occurred. In accrual accounting, the cost of long-term assets is allocated over their useful lives through ...

He said this would be because investors might “unintentionally” sell their earliest purchased assets — those with the lowest cost basis ... time to support all accounting methods.