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The selection of an accounting method for tax purposes by a newly incorporated C corporation: a. Is made on the initial tax r
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Answer: d

This must be disclosed in outgoing documents, like annual reports consisting of financial statements and analysis.

Basically there are two methods of accounting – accrual basis, and cash basis.

Stakeholders and external users (like banks, shareholders, and tax authority) must know the exact method of accounting, so that they can understand it and can make their constructive decision about that C corporation.

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