Which of the following statements about methods of accounting is false?

a. The IRS has the right to determine if a taxpayer s method of accounting clearly reflects the taxpayer's income.

b. A taxpayer must request permission from the IRS to change its method of accounting for tax purposes.

c. A taxpayer engaged in more than one business can use a different method of accounting for each business.

d. Taxpayers must use the same method of accounting to compute taxable income as they use to compute financial statement income

Answer rating: 100% (QA)

The principles and practices of this system were studied in accounting as a freshman Accounting is a system for logging and summarizing business and financial transactions as well as for analyzing ver... View the full answer