ACCUMULATED ADJUSTMENT ACCOUNT Definition

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ACCUMULATED ADJUSTMENT ACCOUNT (AAA) under Section 1368(e)(1) of the IRS Code provides that the term 'accumulated adjustment account' (AAA) means an account of the S corporation which is adjusted for the S period in a manner similar to the adjustments under 1367 (except that no adjustment shall be made for income (and related expenses) which is exempt from tax under title 26 and the phrase '(but not below)' shall be disregarded in 1367(b)(2)(A)) and no adjustment shall be made for Federal taxes attributable to any taxable year in which the corporation was a C corporation.

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SELL-THROUGH ACCOUNTING is where revenue is not recognized until after the product has been subsequently shipped from the wholesalers. See SELL-IN ACCOUNTING.

ORDER-TO-CASH (OTC) is the process where everything that leads from the order, packaging, delivery to having the actual money in the bank is included.

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