Which of the Following Is a True Statement About Accounting

question 48

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.An overall accounting method (cash or accrual) is initially adopted with the first return filed for the business.

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