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.

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Definitions:

Positive Reinforcement

A technique in behavior modification where the introduction of a desirable stimulus strengthens the likelihood of a behavior.

Physical Health

The condition of an individual's body, including the absence of disease and the functioning of physical systems.

Internals

Refers to individuals who primarily see themselves as responsible for the outcomes of their actions and events in their lives, often associated with a high internal locus of control.

Cautious

Characterized by a desire to avoid risks and potential problems, showing carefulness and prudence in actions and decisions.