Final answer:
The statement is false; corporations may not always choose their accounting method for tax purposes, as larger corporations are often required to use the accrual method. Corporations are subject to a variety of taxes, with 'corporate tax' typically referring to a tax on net profits, and they must disclose their effective tax rate. Therefore, the correct option is B.
Step-by-step explanation:
The statement that all corporations may choose to use either the cash or accrual method of accounting for tax is false. While small businesses commonly have the option to choose between these accounting methods, the ability of corporations (particularly larger ones) to choose their accounting method for tax purposes is subject to more restrictions. The accrual method is more commonly mandated for corporations by tax authorities due to its ability to match income and expenses to the period they are actually incurred, providing a clearer picture of a corporation's financial activities. Corporations face various types of taxes, such as property tax, payroll tax, excise tax, customs tax, and value-added tax. Despite the range of taxes, they're generally not referred to as 'corporate taxes'. The 'corporate tax' often refers to a tax on the net profits of a corporation. When a corporation files taxes, their net taxable income is generally determined from their financial statement income. The corporate tax rate can vary by jurisdiction, and each company usually discloses their effective tax rate, which is the average rate applied to their income accounting for any tax benefits received.