Which of the Following Can Use the Cash Method of Accounting

question 32

Multiple Choice

Which of the following can use the cash method of accounting?

• A)An individual taxpayer operating a sole proprietorship with gross receipts of $35 million for which inventory is an income producing factor.
• B)A corporation with gross receipts of $26 million.
• C)A partnership with gross receipts of $900,000 but for which inventory is an income-producing factor.
• D)A manufacturing corporation with gross receipts of $37.2 million.

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Definitions:

Duty of Obedience

The obligation of board members and officers of an organization to follow the organization’s governing statutes and goals, acting within the scope of their authority.

Officers

Individuals appointed or elected to manage and direct the affairs of an organization, typically within corporations, armed forces, or governmental bodies.

Directors

Individuals elected by shareholders to oversee and guide the management and affairs of a corporation.

Articles of Incorporation

Official legal documents that establish a corporation's existence, outlining its name, purpose, structure, and other essential details.