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:

Indifference Curves

A graph showing different bundles of goods between which a consumer is indifferent, pointing out the preferences of the consumer for one combination of goods over another.

Bowed Inward

A description often used in economics to illustrate a production possibility frontier that indicates increasing opportunity costs for producing goods.

Budget Constraint

The limit on the consumption bundles that a consumer can afford to purchase based on their income and the prices of goods and services.

Goods X

A placeholder term typically used in economic models to represent a generic good or product.