CAF-2 · Chapter 7 · Question 10 of 15
Which method of accounting MUST a company follow for computing income chargeable under the head "Income from Business"?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) B) Accrual basis only
Explanation
According to Section 32, a company shall account for income chargeable to tax under the head "Income from Business" strictly on an accrual basis, while other persons (like individuals or AOPs) may use cash or accrual.
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