Which of the Following Statements About the Cash Method of Accounting

question 9

Multiple Choice

Which of the following statements about the cash method of accounting is false?

• A) Under the cash method, annual taxable income equals annual net cash inflow.
• B) The revenue from a sale of goods is recognized when payment is received.
• C) An expense isgenerally recognized when the expense is paid.
• D) None of these choices are false.

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