Which of the Following Is a True Statement About a Request

question 14

Multiple Choice

Which of the following is a true statement about a request for a change in accounting method?

• A)Some requests are automatically granted.
• B)Most requests require the permission of the Commissioner.
• C)Many requests require payment of a fee and a good business purpose for the change.
• D)Form 3115 is required to be filed with a request for change in accounting method.
• E)All of these are truE.All of these reflect true statements about requests for changes in accounting method.

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Definitions:

Initial Capital Requirements

The initial amount of money needed to start a business or investment, covering costs like equipment, inventory, and leasing.

Long-Term Assets

Are resources or investments owned by a company expected to provide value for more than one year, such as land, buildings, machinery, and intellectual property.

Guarantors

Individuals or entities that agree to be responsible for another's debt or obligations if the original party fails to meet its terms.

Loan Endorsers

Individuals or entities that support or guarantee the repayment of a loan, thereby assuming the risk if the original borrower fails to repay.