C Corporations Can Choose Between the Cash Basis and Accrual

question 57

True/False

C corporations can choose between the cash basis and accrual basis method of accounting.

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Definitions:

Operating Activity

Activities that relate directly to the operations of the company, including production, sales, and other core business functions.

Investing Activity

Financial operations related to acquiring or disposing of non-current assets, crucial for budgeting and strategic planning of an organization's capital.

Financing Activity

Transactions related to raising capital and repaying investors, including issuing stock, paying dividends, and borrowing funds.

Net Income

A company's overall earnings following the deduction of all costs and taxes from its gross income.