As a General Rule,C Corporations Must Use the Cash Method

question 60

True/False

As a general rule,C corporations must use the cash method of accounting.However,under several exceptions to this rule (e.g.,average annual gross receipts of $5 million or less for the most recent 3-year period),a C corporation can use the accrual method.

---

Definitions:

Confirmation Bias

The propensity to find, interpret, choose, and recollect details in a way that corroborates the existing beliefs or hypotheses of a person.

Hindsight Bias

The tendency to believe, after learning an outcome, that one would have foreseen it.

Availability Heuristic

A cognitive bias that causes people to overestimate the likelihood of events based on their ability to recall examples more easily.

Confirmation Bias

The habit of looking for, comprehending, selecting, and reminiscing about information that validates an individual's prior convictions or theories.