The Intemal Revenue Code is the primary source of statutory authority for federal income tax law. True False 1. Which of the following statements most accurately defines taxable income from business operations? A. Gross income from the sales of goods or performance of services less allowable deductions. ross income from whatever source derived less allowable deductions. C. Revenues from business transactions less expenses. D. Gross income from whatever source derived less expenses 32. Which of the following methods of accounting is never permissible for computing taxable income? A. Cash method B. Accrual method C. Hybrid method that combines the cash and accrual methods D. All of the above are permissible methods of accounting. 33. Which of the following business expenses always results in a difference between taxable income and book income? A. Rent expense B. Interest expense C. Client entertainment D. Salary expense