Which of the Following Is a True Statement About Accounting

question 81

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:

Acid Chloride

A class of organic compounds derived from acids by replacing a hydroxyl group with a chlorine atom, often used as intermediates in synthesis.

Carboxylic Acid

Organic compounds characterized by the presence of a carboxyl group (-COOH), which consists of a carbon atom double-bonded to an oxygen atom and bonded to a hydroxyl group.

(COCl)2

Phosgene gas, a toxic compound used in organic synthesis, characterized by the formula, with two carbonyl chloride groups.

Nucleophilic Acyl Substitution

A type of organic reaction where a nucleophile replaces a leaving group in an acyl compound, forming a new covalent bond.