Which Taxpayers Cannot Use the Cash Basis Method of Accounting

question 76

Multiple Choice

Which taxpayers cannot use the cash basis method of accounting?

• A) Large C corporations
• B) Tax shelters
• C) Partnerships that have a C corporation as a partner
• D) All of the above must not use the cash basis
• E) All of the above may use the cash basis

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Definitions:

Headquarters

The main office or center of operations of an organization or company, where key managerial and administrative activities are coordinated.

New York

A state in the northeastern U.S., known for New York City and its status as a cultural and financial hub.

North Atlantic Treaty

An agreement that established the North Atlantic Treaty Organization (NATO), a military alliance designed for collective defense against aggression.

Article 5

A provision within a document or constitution which details specific processes or regulations, such as Article 5 of the NATO treaty which outlines the principle of collective defense.