Which of the Following Is a True Statement About Accounting

question 51

Multiple Choice

Which of the following is a true statement about accounting for business activities?

• A) An overall accounting method can only be adopted with the permission of the Commissioner.
• B) An overall accounting method is initially adopted on the first return filed for the business.
• C) The cash method can only be adopted by individual taxpayers.
• D) The accrual method can only be adopted by corporate taxpayers.
• E) None of these is true.

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Definitions:

Inventory

The total amount of goods and/or materials contained in a store or factory at any given time.

GDP

Gross Domestic Product, a measure of the economic performance of a country, calculated by adding the total value of all goods and services produced over a specific time period.

Overall Economic Conditions

The current state of the economy, including factors such as growth rates, inflation, unemployment, and productivity.

Pyramidal Composition

refers to an artistic arrangement or structure in which elements of a work are organized in the shape of a pyramid, often used to create a sense of stability and focus.