Which of the Following Businesses Can Use the Cash Method

question 92

Multiple Choice

Which of the following businesses can use the cash method?
I.The Hateris Group,a partnership with 3 equal partners,of which one is The Hillard Corporation.Average revenues for the Hateris Group,a financial planning firm,over the last three years are $4,000,000.
II.The Glidder Corporation,a clothing retailer that has average annual sales over the last three years are $2,100,000.
​

• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

---

Definitions:

Rational Choice Theories

Rational choice theories are based on the premise that individuals make decisions by calculating the costs and benefits of various actions to maximize their personal advantage.

Coterminous

means sharing the same boundaries or extent in space, time, or meaning.

Exchange Theory

A theoretical framework suggesting that social behavior is the result of an exchange process aiming to maximize benefits and minimize costs to individuals.

Rational Choice Theory

A framework for understanding and often formally modeling social and economic behavior based on the assumption that individuals act on rational self-interest.