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Which of the Following Statements About the Cash Method of Accounting

Question 47

Multiple Choice

Which of the following statements about the cash method of accounting is false?


A) Under the cash method, annual taxable income equals annual net cash inflow.
B) The revenue from a sale of goods is recognized when payment is received.
C) An expense isgenerally recognized when the expense is paid.
D) None of these choices are false.

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