Which of the Following Is a True Statement About Impermissible

question 75

Multiple Choice

Which of the following is a true statement about impermissible accounting methods?

• A)An impermissible method is adopted by using the method to report results for two consecutive years.
• B)An impermissible method may never be used by a taxpayer.
• C)Cash-method accounting is an impermissible method for partnerships and Subchapter S- electing corporations.
• D)There is no accounting method that is impermissible.
• E)None of the choices are true.

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Definitions:

Responsibility

An obligation or duty to perform or complete a task or role, usually with accountability for the outcome.

Hierarchy

A system or organization in which people or groups are ranked one above the other according to status or authority.

Organizational Subsystem

A division or unit within an organization that has its specific role and functions contributing to the overall objectives.

Boundary-Spanning

Activities and practices by individuals or units within an organization that interact with and adapt to external environments and stakeholders.