Mike Started a Calendar-Year Business on September 1^st of This

question 28

Multiple Choice

Mike started a calendar-year business on September 1^st of this year by paying 12 months of rent on his shop at $600 per month. What is the maximum amount of rent that Mike can deduct this year under each type of accounting method?

• A)$7,200 under the cash method and $7,200 under the accrual method
• B)$2,400 under the cash method and $7,200 under the accrual method
• C)$7,200 under the cash method and $2,400 under the accrual method
• D)$2,400 under the cash method and $2,400 under the accrual method
• E)$2,400 under the cash method and zero under the accrual method

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Definitions:

Longitudinal Research Design

A research strategy that involves repeated observations of the same variables (e.g., people) over short or long periods of time.

Cross-Sectional Research Design

A research method that analyzes data from a population, or a representative subset, at a specific point in time.

Self-Esteem

An individual's overall subjective emotional evaluation of their own worth.

High School

An educational institution providing secondary education, typically for students aged 14 to 18.