Which of the Following Businesses Can Use the Cash Method

question 76

Multiple Choice

Which of the following businesses can use the cash method?
I.The Donner Group,a partnership with 3 equal partners,of which one is The Garden Corporation.Average revenues for the Donner Group,a consulting firm,over the last three years are $4,000,000.
II.The Mongoose Corporation,a computer software consultant that has average annual fees from services over the last three years are $2,100,000.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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