Franklin Company Began Business in 2011 and Has Consistently Used

question 16

True/False

Franklin Company began business in 2011 and has consistently used the cash method to report income from the sale of inventory in income tax returns filed for 2011 through 2015.As a result of an audit by the IRS,Franklin was required to change to the accrual method of accounting beginning with 2016.The net adjustment due to the change is a positive adjustment to income.The adjustment may be spread equally over 2016 and the three following years.

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Definitions:

Social Entrepreneurship

A form of entrepreneurship that aims to solve social problems or meet community needs through innovative business models.

Social Businesses

Companies designed to address social problems with commercial strategies while reinvesting profits back into their missions.

Yunus

Refers to Muhammad Yunus, a Bangladeshi social entrepreneur, banker, and economist known for founding the Grameen Bank and pioneering concepts of microcredit and microfinance.

Social Entrepreneurship

The use of startup companies and other entrepreneurs to develop, fund, and implement solutions to social, cultural, or environmental issues.