Which of the Following Statements Is Always True Regarding Accounting

question 88

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 non-tax-shelter 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.

---

Definitions:

Word Association

is a psychological method where individuals spontaneously say or write the first word that comes to mind in response to a given word.

Neuroses

A term often used historically to describe a range of psychological disorders characterized by anxiety, depression, or other feelings of distress but not by delusions or hallucinations.

Anxiety-dominated Disturbances

Psychological disorders primarily characterized by excessive fear, worry, and anxiety.

Unconscious

The part of the mind that is inaccessible to the conscious mind but that affects behavior and emotions.