Which of the Following Businesses Must Use the Accrual Method

question 45

Multiple Choice

Which of the following businesses must use the accrual method of accounting to account for all or a part of its operations?

• A)F Gas Corporation, a chain of 10 gas stations owned and operated by F.The corporation has gross receipts of $3 million annually.
• B)The Clinic.This corporation is owned and operated by 80 physicians who provide a variety of health care services to the citizens of Houston.Annual billings to insurance companies and patients monthly exceed $20 million.
• C)Whitewater Rafting of Idaho is a partnership owned by B and T.Gross receipts for the past several years have averaged $100,000.
• D)D Drilling, a partnership owned by J and A.The partnership operates oil drilling rigs all over the world.Annual gross receipts consistently exceed $8 million.
• E)More than one of the above and these are__________.

---

Definitions:

Sports Mascots

Symbols, often in the form of characters or animals, used by sports teams to represent their identity, spirit, and values to fans.

Common-interest Associations

Organizations formed by individuals who unite to pursue shared goals or interests, ranging from hobby clubs to professional societies.

Virtual Communities

Groups of individuals who interact through and within digital platforms or environments, sharing common interests or goals.

Lineage

The direct descent from an ancestor; the line of ancestors of a specific person or group.