Final answer:
The statement that corporations typically use the cash basis for their transactions is false. Option b
Step-by-step explanation:
In fact, most corporations use the accrual accounting method rather than the cash basis method. The accrual method records income when it is earned and expenses when they are incurred, regardless of when the cash is actually received or paid.
This method provides a more accurate financial picture for corporations, especially large ones, as it matches revenue with the expenses incurred to generate that revenue. Conversely, the cash basis of accounting recognizes revenue and expenses only when money changes hands. Option b