Which of the Following Statements Concerning the Cash Method of Accounting

question 115

Multiple Choice

Which of the following statements concerning the cash method of accounting is true?

• A) A cash basis taxpayer who is in constructive receipt of an income item must recognize that income, even if the item is not in the taxpayer's actual possession.
• B) A cash basis taxpayer can deduct the purchase cost of business equipment.
• C) A cash basis taxpayer does not recognize gross income on receipt of an economic benefit unless that benefit consists of money.
• D) A cash basis taxpayer can deduct interest when it is paid, regardless of the time period for which the interest is charged.

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Definitions:

Emotional Abuse

A form of abuse characterized by a person subjecting or exposing another to behavior that may result in psychological trauma, including anxiety, chronic depression, or post-traumatic stress disorder.

Dissociative Identity Disorder

A psychiatric disorder characterized by the presence of two or more distinct personality states that control a person's behavior in different situations.

Gender

A social and cultural construct relating to behaviors, roles, expectations, and identities based on perceived sex differences, often categorized as male, female, or non-binary.

Sexual Orientation

An enduring pattern of romantic or sexual attraction (or a combination of these) to persons of the opposite sex or gender, the same sex or gender, or both, or more than one gender.