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:

Psychological Disorders

Mental disorders characterized by patterns of thought, feeling, or behavior that are significant enough to cause distress or impair functioning.

Psychosocial Contexts

The interrelation of social factors and individual thought and behavior, emphasizing the influence of societal, familial, and interpersonal aspects on psychological functioning.

Gender-related Difference

Variations in characteristics, behaviors, or attitudes between males and females attributable to societal, biological, or psychological factors.

Mental Health Issues

Disorders that affect one's mood, thinking, and behavior, ranging from depression and anxiety to schizophrenia.