1-Which of the following characteristics support the wider allowance and use of the cash method of accounting for taxation purposes?

	The cash method is easier for taxpayer compliance and easier for tax auditors.
	The cash method doesn't allow taxpayers flexibility of when to time cash receipts and disbursements
	The cash method matches revenue recognition to the ability to make the cash tax payments.
	The cash method has a potential to distort income

2-Which of the following usually is not taxable for US income tax purposes

	interest on state and local bonds
	interest on US government bonds
	gains and losses from sales of state and local bonds
	amortization of the discount on corporate 0% coupon bonds