When a New Business Is Formed,it Must Request Approval from the IRS

question 3

True/False

When a new business is formed,it must request approval from the IRS regarding the adoption of its various accounting methods.

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Definitions:

Excess Reserves

The amount of reserves that banks hold beyond the required minimum to meet potential withdrawals by customers.

Liquid Asset

Assets that can be quickly and easily converted into cash without significant loss in value.

Store Of Value

An asset that can be saved, retrieved, and exchanged at a later time, and is predictably useful in the future to purchase goods and services.

Medium Of Exchange

A system or object that is widely accepted in exchange for goods and services, facilitating trade by eliminating the need for a barter system.