When the IRS Requires a Taxpayer to Change Accounting Methods

question 54

Multiple Choice

When the IRS requires a taxpayer to change accounting methods:

• A) The taxpayer may be subject to penalties and interest.
• B) The taxpayer generally is required to make the change as of the beginning of the earliest open year.
• C) The adjustments due to the change cannot be spread over subsequent years.
• D) Only a. and b. are correct.
• E) a., b., and c. are correct.

---

Definitions:

Decision-making Authority

The power or right conferred on individuals or groups to make important decisions and choices within an organization.

Job Rotation

A human resources strategy where employees are moved between different jobs or tasks at a company to gain experience and skills.

Job Enrichment

A method of motivational management by increasing the degree of responsibility and interest in the job role, aiming to enhance job satisfaction and performance.

Frederick Herzberg

Frederick Herzberg was an influential American psychologist who is best known for developing the Motivation-Hygiene Theory, also known as the Two-Factor Theory of job satisfaction and motivation.