Which of the Following Is a True Statement About Accounting

question 27

Multiple Choice

Which of the following is a true statement about accounting for business activities?

• A)An overall accounting method can only be adopted with the permission of the commissioner.
• B)An overall accounting method is initially adopted on the first return filed for the business.
• C)The cash method can only be adopted by individual taxpayers.
• D)The accrual method can only be adopted by corporate taxpayers.
• E)None of the choices are true.

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Definitions:

Z-Test

A statistical test used to determine whether two population means are different when the variances are known and the sample size is large.

Degrees of Freedom

The total number of independent pieces of information that went into the estimation of a parameter or the calculation of a statistic.

Chi-Squared Table Value

A value derived from the chi-squared distribution used in statistical tests to determine the significance of observed data.

Test Statistic

A calculated value from sample data used to make decisions about a hypothesis, indicating whether to reject the null hypothesis.