Which of the Following Statements About Methods of Accounting Is

question 112

Multiple Choice

Which of the following statements about methods of accounting is false?

• A) The IRS has the right to determine if a taxpayer's method of accounting clearly reflects the taxpayer's income.
• B) A taxpayer must request permission from the IRS to change its method of accounting for tax purposes.
• C) A taxpayer engaged in more than one business can use a different method of accounting for each business.
• D) Taxpayers must use the same method of accounting to compute taxable income as they use to compute financial statement income.

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Definitions:

Biased

Refers to having an unfair or prejudiced perspective towards a person or group.

Athlete

A person who competes in one or more sports that involve physical strength, speed, or endurance.

Work Ethic

The value placed on hard work and diligence as virtues leading to success and personal achievement.

Talent

Natural aptitude or skill possessed by an individual, often in a particular field.