Final answer:
The fact that the accounting method used to measure income is consistent with GAAP does not guarantee its acceptability for tax purposes.
Step-by-step explanation:
The answer is A. True. The fact that the accounting method the taxpayer uses to measure income is consistent with Generally Accepted Accounting Principles (GAAP) does not ensure that the method will be acceptable for tax purposes. Tax regulations often have specific requirements and guidelines that differ from GAAP.
For example, tax regulations may allow for different depreciation methods or require the recognition of certain types of income at different times. Therefore, even if an accounting method is in accordance with GAAP, it may not meet the requirements of tax law.
It is important for taxpayers to understand and comply with the specific tax regulations when measuring income for tax purposes.