Which of the Following Statements Is Always True Regarding Accounting

question 148

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 nontax-shelter partnership had average annual gross receipts of less than $25 million in for the last three tax 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 these statements are always true.

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Definitions:

Organized-Gambling Venues

Places such as casinos or sports betting facilities where gambling activities are regulated and officially sanctioned.

Risk-Loving Individuals

Persons who prefer outcomes with more risk for the chance of higher rewards, as opposed to safer options.

Lloyd's Of London

A UK-based marketplace for insurance and reinsurance where participants form syndicates to jointly insure and distribute risk.

Merchant Ships

Commercial vessels used in international trade to transport goods and sometimes passengers.