Which of the Following Is a True Statement About Accounting

question 66

Multiple Choice

Which of the following is a True statement about accounting for business activities?

• A) An overall accounting method can only be adopted with the permission of the Commissioner.
• B) An overall accounting method is initially adopted on the first return filed for the business.
• C) The cash method can only be adopted by individual taxpayers.
• D) The accrual method can only be adopted by corporate taxpayers.
• E) None of the choices are True.

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Definitions:

Demographic Transition View

A model explaining how changes in birth and death rates can affect the age and growth dynamics of a population over time.

Opportunity Costs

The value of the next best alternative that is foregone when a decision is made.

Underemployment

A situation in which workers are employed below their skill level or work fewer hours than they would prefer.