Under the Cash Method of Accounting,all of the Following Are

question 57

Multiple Choice

Under the cash method of accounting,all of the following are true with the exception of:

• A)Fixed assets are always expensed as the taxpayer pays for the assets.
• B)Gross income includes the value of property received.
• C)To some extent,a taxpayer may control the year in which an expense is deductible by choosing when to make the payment.
• D)Income is reported in the tax year in which payments are actually or constructively received.

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Definitions:

Obsolescence

Obsolescence refers to the process of becoming outdated or no longer used, often due to the introduction of newer and more effective products, technologies, or processes.

Plant Assets

Long-term tangible assets used in the operating activities of a business, such as buildings, machinery, and equipment.

Salvage Values

The estimated residual value of an asset at the end of its useful life, reflecting what it can be sold for.

Plant Assets

Long-term tangible assets used in the production of goods and services, such as machinery, buildings, and equipment.