Which of the Following Statements Concerning the Cash Method of Accounting

question 115

Multiple Choice

Which of the following statements concerning the cash method of accounting is true?

• A) A cash basis taxpayer who is in constructive receipt of an income item must recognize that income, even if the item is not in the taxpayer's actual possession.
• B) A cash basis taxpayer can deduct the purchase cost of business equipment.
• C) A cash basis taxpayer does not recognize gross income on receipt of an economic benefit unless that benefit consists of money.
• D) A cash basis taxpayer can deduct interest when it is paid, regardless of the time period for which the interest is charged.

---

Definitions:

Marketing Communications

The strategies and methods used by companies to convey their brand messages to target audiences, including advertising, public relations, and social media.

Secondary Data

Pieces of information that have already been collected from other sources and usually are readily available.

Quantitative Research

A research method focused on obtaining data through objective measurement and statistical analysis.

Data Collection

The systematic approach to gathering and measuring information from various sources to get a complete and accurate picture of an area of interest.