Final answer:
It is true that the net method of accounting for cash discounts requires adjusting entries for discounts that are taken. Transactions are recorded with the discount in mind, and if the discount is not utilized, an adjustment is made to reflect the full price paid or received.
Step-by-step explanation:
The statement that the net method of accounting for cash discounts requires adjusting entries for discounts taken is True. When using the net method, sales and purchases are recorded at the net of the discount amount. If the discount is taken, no further entry is needed because the transaction was already recorded with the discount in mind. However, if the discount is not taken, an adjusting entry is necessary to record this fact. This adjusting entry typically involves debiting an expense account and crediting accounts payable for purchases or debiting accounts receivable and crediting a revenue account for sales to account for the loss of the discount.