The Taxpayer Had Incorrectly Been Using the Cash Method of Accounting.For

question 39

Multiple Choice

The taxpayer had incorrectly been using the cash method of accounting.For 2016,the company voluntarily changed to the accrual method.The adjustment due to the change in method as calculated at the beginning of 2016 was $120,000 (positive) .The adjustment as calculated as of the end of 2016 was $80,000 (positive) .As a result of the change in method,the company must:

• A)Increase its income for 2016 by $120,000.
• B)Increase its income for 2016 by $80,000.
• C)Increase its income for 2016 by $30,000.
• D)Increase its income for 2016 by $40,000.
• E)None of the above.

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Definitions:

Collective Actors

Groups or entities that act together with a shared purpose or intention in social or political arenas.

Reality Proposition

A statement or assertion that can be tested and verified to determine its truth in relation to reality or empirical facts.

Aggression-Approval

Describes a situational response wherein acts of aggression are met with approval or consent, often studied in social psychology.

Stimulus

Any object or event that elicits a sensory or behavioral response in an organism.