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Businesses face a choice between two important methods of calculating taxable income for federal income taxes: the cash method and the accrual method.
Based on your readings for the module, respond to the following:
• What factors determine a company's choice between the cash method and the accrual method in accounting for income taxes?
• Give an example of a particular transaction and describe how the two methods would account for that transaction differently.
Write your initial response in two to three paragraphs.
What is the business? This doesn't need to be a company name but rather a description of the specific line of business to be undertaken in this other country.
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