T Corporation Manufactures the Banana, a Clone of a Popular

question 10

Multiple Choice

T Corporation manufactures the Banana, a clone of a popular computer.Its gross receipts for the last several years have averaged $4 million.Indicate which of the following statements is true with respect to the method of accounting that T can adopt.

• A)The corporation may use the cash method to account for all receipts and disbursements.
• B)The corporation must use the accrual method to account for all receipts and disbursements.
• C)The corporation may use the cash method for some items and the accrual method for other items as it desires.
• D)The corporation may use the cash method for some items but is required to use the accrual method for other items.

---

Definitions:

Dreaming

A series of thoughts, images, or emotions occurring during sleep.

Pons

A part of the brain located above the medulla and beneath the midbrain, involved in regulating breathing, communication between different parts of the brain, and sensations such as hearing, taste, and balance.

Head Injury

Physical trauma to the head, which can affect the brain and lead to temporary or permanent damage.

Cerebral Cortex

The outer layer of the brain that is involved in high-level functions such as sensation, voluntary muscle movement, thought, reasoning, and memory.