Franklin Company Began Business in 2012 and Has Consistently Used

question 57

True/False

Franklin Company began business in 2012 and has consistently used the cash method to report income from the sale of inventory in income tax returns filed for 2012 through 2016.As a result of an audit by the IRS,Franklin was required to change to the accrual method of accounting beginning with 2017.The net adjustment due to the change is a positive adjustment to income.The adjustment may be spread equally over 2017 and the three following years.

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Definitions:

Metacognition

The awareness and understanding of one's own thought processes, often referred to as "thinking about thinking."

Recognition Strategy

The cognitive approach of identifying information or objects by matching them to stored information or patterns in the brain.

Metamemory

Refers to an individual's knowledge and awareness of their own memory processes.

Hierarchical Memory

A memory system organized in levels of importance or accessibility, illustrating how information is prioritized and stored.