The Cash Method Can Always Be Used by a Corporation

question 3

True/False

The cash method can always be used by a corporation even if inventory and cost of goods sold are a significant income-producing factor in the business.

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Definitions:

Single

A filing status for a taxpayer who is unmarried and does not qualify for other filing statuses like Head of Household.

Failure To File Penalty

A penalty imposed by tax authorities for not filing a required tax return by the due date.

Tax Liability

The total amount of tax that an individual or entity is legally obligated to pay to a taxing authority.

Remaining Tax

The portion of tax liability that remains unpaid after all payments and credits have been applied, effectively the balance due.