Generally, an Advantage to Using the Cash Method of Accounting

question 7

True/False

Generally, an advantage to using the cash method of accounting, as compared to the accrual method, is that under the cash method, income is not recognized until it is collected rather than being taxed as soon as the taxpayer has the right to collect the income.

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Definitions:

Careful Manner

Conducting activities with diligence and attention to avoiding harm or errors.

Driving While Impaired

The act of operating a vehicle under the influence of alcohol, drugs, or other substances that impair cognitive and motor skills.

Occupiers' Liability Act

Legislation that defines the duty of care owed by individuals or entities that control premises towards those who enter them.

Legal Duty

An obligation arising from law that requires an individual or entity to conform to a standard of conduct.