Which of the Following Is a True Statement About Accounting

question 61

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 the choices are true.

---

Definitions:

Product Class

A broad category of products that serve a similar function or are targeted at a similar market, such as electronics or personal care items.

Product Adoption

The process by which a new product or service is accepted and used by the market.

Product Proliferation

The increase in the number and variety of products offered by a company or in a market, often leading to greater choice for consumers but also increased complexity and competition.

Fad Product

A product that becomes extremely popular in a short period of time and whose popularity fades just as quickly.