Taxpayers Must Use Special Accounting Methods for Inventories If They

question 54

Multiple Choice

Taxpayers must use special accounting methods for inventories if they are an income producing factor.Which of the following statements is true?

• A)The taxpayer is required to accrue the cost of the inventory but may report sales when receivables are collected.
• B)The taxpayer is required to accrue the cost of the inventory and accrue the income from sales of the inventory.
• C)The taxpayer is required to expense the cost of the inventory and accrue the income from sales of the inventory.
• D)None of the above are correct.

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