Which of the Following Statements About the Cash Method of Accounting

question 81

Multiple Choice

Which of the following statements about the cash method of accounting is false?

• A)Under the cash method,annual taxable income equals annual net cash inflow.
• B)The revenue from a sale of goods is recognized when payment is received.
• C)An expense is recognized when the expense is paid.
• D)None of the above is false.

---

Definitions:

Menstrual Cycle

A regular natural change that occurs in the female reproductive system, making pregnancy possible.

Ovulation

The release of an egg from an ovary in females, part of the menstrual cycle.

Progesterone

A steroid hormone secreted by the corpus luteum, which primes the uterus for pregnancy preparation.

Endometrium

The inner lining of the uterus that thickens during the menstrual cycle and sheds during menstruation if no pregnancy occurs.