Mark the correct answer. In cash basis accounting, for tax purposes:
a. Income is recognized when it is actually or constructively received and expenses are recognized when they are actually or constructively incurred, regardless of when paid.
b. Income is recognized when it is earned regardless of when received and expenses are recognized when they are actually or constructively incurred.
c. Income is generally recognized when it is actually or constructively received and expenses are generally recognized when they are paid.
d. The cash basis is not allowed for businesses reported on Schedule C.
c
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According to research on service industry companies, which of the following types of organizations rated highest in innovation and risk taking?
A. consulting firms B. all service industry companies scored about average C. transportation companies D. accounting firms
The return on assets ratio:
A) considers the investments made by all creditors and stockholders of the company. B) reflects investments made only by creditors of the company. C) is based on average stockholders' equity as compared to net income for the period. D) is a measure of the company's liquidity.
Modigliani and Miller (MM) won Nobel Prizes for their work on capital structure theory.
Answer the following statement true (T) or false (F)
To give away a door prize, the host of a dinner party put each person's name into a hat, mixed them up, and selected one name. What sampling method was used?
A. Simple random sample B. Systematic sample C. Stratified random sample D. Cluster sample