Which of the Following Is Not an Acceptable Method of Accounting

question 18

Multiple Choice

Which of the following is not an acceptable method of accounting under the tax law?

• A)The accrual method
• B)The cash method
• C)The hybrid method
• D)All of the above are acceptable
• E)None of the above

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Definitions:

Financial Position

A snapshot of a company's assets, liabilities, and equity at a given point in time, showing its economic situation.

Statement Of Comprehensive Income

A financial statement that presents a company's total income, including both net income and other income items that are not included in the net income.

Gross Profit Ratio

A financial metric that compares gross profit to net sales, revealing the efficiency of a company in managing its labor and supplies in production.

Accounts Receivable

Customer-incurred debts to a business for goods or services for which payment is outstanding.