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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Definitions:

Net Benefit

The total positive effects of a decision or action minus the total costs associated with it.

Crime-Control Program

Initiatives or strategies implemented to reduce the incidence of crime and increase public safety.

Cost-Benefit Analysis

A systematic approach to estimating the strengths and weaknesses of alternatives in order to determine the best option in terms of benefits and costs.

Allocation Of Resources

The process of distributing available resources, including time, money, and manpower, among various projects or business units to achieve strategic goals.