Generally income tax accounting methods are designed to result in
I.a tax based on the amount of cash available in the current period to pay taxes.
II.a denial of a current deduction for costs that will not have to be paid in the near future.

A)Only statement I is correct.
B)Only statement II is correct.
C)Both statements are correct.
D)Neither statement is correct.

Question

Generally income tax accounting methods are designed to result in
I.a tax based on the amount of cash available in the current period to pay taxes.
II.a denial of a current deduction for costs that will not have to be paid in the near future.
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A)Only statement I is correct.
B)Only statement II is correct.
C)Both statements are correct.
D)Neither statement is correct.

Quizplus · Accepted Answer

Both statements are correct. Income tax accounting methods are designed to result in a tax based on the amount of cash available in the current period to pay taxes and a denial of a current deduction for costs that will not have to be paid in the near future.

Generally Income Tax Accounting Methods Are Designed to Result in