C Corporations Can Choose Between the Cash-Basis and Accrual-Basis Methods

question 46

True/False

C corporations can choose between the cash-basis and accrual-basis methods of accounting.

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Definitions:

Brokers

Intermediaries that facilitate buying and selling of securities, commodities, or other financial instruments on behalf of clients.

Sales

The exchange of goods or services for money, representing the primary source of revenue for most businesses.

Dividend Announcement

is a public declaration by a company of its intention to pay out earnings to its shareholders in the form of dividends.

Signaling Effect

A phenomenon where decisions made by a company send signals to the market about its future prospects or the value of its stock.