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All of the Following Statements Regarding Accounting Methods Are True

Question 39

Multiple Choice

All of the following statements regarding accounting methods are true except:


A) If inventory is a material, income-producing item for your business, you must use the accrual method for your sales and purchases.
B) If you use the cash method for reporting expenses, you can use the accrual method for figuring income.
C) If you use the accrual method for reporting expenses, you can use the cash method for figuring income.
D) If you operate more than one business, you may use a different accounting method for each separate and distinct business, provided that the method clearly reflects income.

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