Which of the Following Statements About the Cash Method of Accounting

question 81

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 is recognized when the expense is paid.
• D)None of the above is false.

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Definitions:

U.S. Currency

The system of money in general use in the United States, including coins and paper notes issued by the government.

Production Possibility Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs representing resources or other constraints.

Specialization and Trade

The practice where individuals or entities focus on the production of specific goods or services to trade for others, increasing efficiency and consumer choice.

Terms of Trade

The proportion between a country's export price index and its import price index.