TQK, LLC, Provides Consulting Services and Was Formed on 1/31/X5

question 85

Multiple Choice

TQK, LLC, provides consulting services and was formed on 1/31/X5.Aaron and ABC, Inc., each hold a 50 percent capital and profits interest in TQK.If TQK averaged $27,000,000 in annual gross receipts over the last three years, what accounting method can TQK use for X9?

• A)Accrual method.
• B)Cash method.
• C)Hybrid method.
• D)Accrual method or cash method.

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