Which of the Following Is a True Statement About Impermissible

question 83

Multiple Choice

Which of the following is a true statement about impermissible accounting methods?

• A) An impermissible method is adopted by using the method to report results for two consecutive years.
• B) An impermissible method may never be used by a taxpayer.
• C) Cash method accounting is an impermissible method for partnerships and Subchapter S electing corporations.
• D)There is no accounting method that is impermissible.
• E)None of these

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Definitions:

Budget Deficit

The financial situation where an entity's expenditures exceed its revenues.

Import Quotas

Government-imposed limits on the quantity or value of goods that can be imported into a country.

Capital Flight

A phenomenon where money or assets rapidly flow out of a country, often in response to economic or political instability.

Loanable Funds

A term in economics that refers to all the money available for borrowing, encompassing both savings and credits created in the banking system.