TQK, LLC Provides Consulting Services and Was Formed on 1/31/X5

question 81

Multiple Choice

TQK, LLC provides consulting services and was formed on 1/31/X5. Aaron and ABC, Inc. each hold a 50% capital and profits interest in TQK. If TQK averaged $7,000,000 in annual gross receipts over the last three years, what accounting method can TQK use for X9?

• A) Accrual method.
• B) Cash method.
• C) Accrual method or Cash method.
• D) Hybrid method.

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Definitions:

Physiological Responses

The body's automatic reactions to internal or external stimuli, often part of the nervous and endocrine systems' roles.

Tolerance

The process by which one's body becomes less responsive to a substance or a stimulus after repeated exposure.

Intoxication

The condition of having physical or mental control impaired by the consumption of alcohol or drugs.

Substance

Naturally occurring or synthetically produced product that alters perceptions, thoughts, emotions, and behaviors when ingested, smoked, or injected.