A taxpayer uses the accrual method in determining the taxable income from his sole proprietorship included in his tax return.He must also use the accrual method for reporting investment income and itemized deductions included in his tax return.

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Quizplus · Accepted Answer

A taxpayer can use different accounting methods for different types of income and deductions, as long as the methods are consistently applied and clearly reflect income.

A Taxpayer Uses the Accrual Method in Determining the Taxable