The Accrual Method I

The accrual method I. is permitted for the advance receipt of rent income. II. is never permitted under the deferral method. is permitted for the advance receipt of payments for goods to be delivered within the next III. tax year if the payment is less than the cost of goods sold and the payment is deferred for financial accounting purposes. IV. is permitted for the advance receipt of interest income.

A) Only statement I is correct.
B) Only statement III is correct.
C) Only statements I and II are correct.
D) Only statements II and III are correct.
E) Only statements II, III, and IV are correct.