Which of the Following Statements Regarding a Corporation's Overall Accounting

question 121

Multiple Choice

Which of the following statements regarding a corporation's overall accounting method is true?

• A)If a corporation's average gross receipts for 2016-2018 are $26,500,000, the corporation is required to use the accrual method of accounting in 2019.
• B)If a corporation's first year of existence is 2018 and the corporation's gross receipts in 2018 are $29 million, the corporation is required to use the accrual method of accounting in 2019.
• C)Both of these are true statements.
• D)Neither of these are true statements.

Understand the concept of a check register and how to record transactions in it.

Develop proficiency in calculating the adjusted cash balance by adding deposits and subtracting checks written.

Acquire skills to reconcile cash balances with bank statements or completion of check stubs.

Enhance mathematical skills specifically in addition and subtraction of monetary values in the context of business transactions.

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Definitions:

Functional Currency

The primary currency used by a business or entity in its daily operations.

South African Rand

The South African Rand is the official currency of South Africa, denoted by the symbol ZAR.

Functional Currency

The currency of the primary economic environment in which an entity operates and carries out its transactions, used in its financial reporting.

Professional Judgment

The application of relevant training, knowledge, and experience in making informed decisions or opinions in a professional setting.