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

question 105

Multiple Choice

The taxpayer had incorrectly been using the cash method of accounting.For 2014,the company voluntarily changed to the accrual method.The adjustment due to the change in method as calculated at the beginning of 2014 was $120,000 (positive) .The adjustment as calculated as of the end of 2014 was $80,000 (positive) .As a result of the change in method,the company must:

• A)Increase its income for 2014 by $120,000.
• B)Increase its income for 2014 by $80,000.
• C)Increase its income for 2014 by $30,000.
• D)Increase its income for 2014 by $40,000.
• E)None of these.

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Definitions:

Punch Cards

Pieces of stiff paper that contain digital data represented by the presence or absence of holes in predefined positions, historically used for controlling machinery or data processing.

Brand Equity

The value attributed to a brand based on consumer perception, recognition, and loyalty.

Marketing Mix

A combination of factors that can be controlled by a company to influence consumers to purchase its products, typically categorized into four elements: Product, Price, Place, and Promotion.

Product Line Depth

The variety of products or versions offered within a particular line to cater to different customer needs or preferences.