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Which of the following statements concerning the cash method of accounting is true? Multiple Choice A cash basis taxpayer who is in constructive receipt of
Which of the following statements concerning the cash method of accounting is true?
Multiple Choice
A cash basis taxpayer who is in constructive receipt of an income item must recognize that income, even if the item is not in the taxpayer's actual possession.
A cash basis taxpayer can deduct the purchase cost of business equipment.
A cash basis taxpayer does not recognize gross income on receipt of an economic benefit unless that benefit consists of money.
A cash basis taxpayer can deduct interest when it is paid, regardless of the time period for which the interest is charged.
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