Which of the Following Statements Is Always True Regarding Accounting

question 24

Multiple Choice

Which of the following statements is always true regarding accounting methods available to a partnership?

• A) If a partnership is a tax shelter, it can use the cash method of accounting.
• B) If a non­tax­shelter partnership had "average annual gross receipts" of less than $5 million in all prior years,
• It can use the cash method.
• C) If a partnership has a partner that is a personal service corporation, it cannot use the cash method.
• D) If a partnership has a partner that is a C corporation, it cannot use the cash method.
• E) All of the above statements are false.

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Definitions:

Formulated

The process of creating or devising a strategy, plan, or concept in a detailed and systematic manner.

Condition Your Dog

The process of training your dog to behave in a certain way or respond to certain commands through the use of rewards and punishments.

Sound Of A Bell

Auditory stimuli that are typically produced by striking a bell, often used in classical conditioning experiments to elicit a conditioned response.

UCS And CS

Unconditioned Stimulus (UCS) is a stimulus that naturally and automatically triggers a response without prior learning; Conditioned Stimulus (CS) is a previously neutral stimulus that, after becoming associated with the unconditioned stimulus, eventually comes to trigger a conditioned response.