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:

Outputs

Refers to the devices or elements controlled by a system, which change state or perform actions based on processed instructions or inputs.

Parallel Logic

A method of computation or digital circuit design where multiple processes or operations are carried out simultaneously.

AND Logic

A fundamental logic operation where the output is true only if all the inputs are true, used in computing and digital circuits.