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.

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Definitions:

Safest

Having the highest degree of protection from risks, harm, or any dangerous situations.

Receiver's Sense

The understanding or interpretation of a message by the person who receives it, influenced by their perceptions and context.

Responsibility

The obligation to carry out tasks, duties, or roles effectively and to be accountable for the outcomes.

Pride

A feeling of deep satisfaction derived from one's own achievements, qualities, or possessions.