All of the Following Statements Regarding Accounting Methods Are True

question 58

Multiple Choice

All of the following statements regarding accounting methods are true except:

• A) If inventory is a material, income-producing item for your business, you must use the accrual method for your sales and purchases.
• B) If you use the cash method for reporting expenses, you can use the accrual method for figuring income.
• C) If you use the accrual method for reporting expenses, you can use the cash method for figuring income.
• D) If you operate more than one business, you may use a different accounting method for each separate and distinct business, provided that the method clearly reflects income.

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Definitions:

Ductal

Pertaining to or involving ducts in the body, such as those in the glands, pancreas, or mammary glands.

Leukemias

A group of cancers that affect the blood and bone marrow, characterized by an overproduction of abnormal white blood cells.

Blood-forming Tissues

Refers to the tissues responsible for the production of blood cells, including the bone marrow and lymphatic tissue.

Oligodendroglioma

A rare type of brain tumor that arises from oligodendrocytes, cells that produce the myelin sheath covering nerve cells.