A Taxpayer Obtains Permission to Change an Accounting Method

question 99

Multiple Choice

A taxpayer obtains permission to change an accounting method.The change will result in a positive adjustment to income.To help in managing its cash flow,the taxpayer would like to spread the change over multiple years.In order to take advantage of this opportunity,the net positive adjustment must exceed

• A)$25,000.
• B)$3,000.
• C)$10,000.
• D)$0.

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Definitions:

Cognitive Psychologist

A professional who studies mental processes such as perception, thought, memory, and reasoning.

Nationality

Refers to the belonging or affiliation of an individual to a specific nation either by birth or naturalization.

Concrete Operational

A stage in Piaget's theory of cognitive development, occurring from approximately age 7 to 11, where children gain the abilities for logical thought about concrete events, understand the law of conservation, and can classify and seriate.

Conservation

The protection, preservation, management, or restoration of natural environments and the ecological communities that inhabit them.