WFO Corporation Has Gross Receipts According to the Following Schedule

question 70

Multiple Choice

WFO Corporation has gross receipts according to the following schedule: If WFO began business as a cash-method corporation in Year 1, in which year would it have first been required to use the accrual method?

• A)Year 3.
• B)Year 4.
• C)Year 5.
• D)Year 6.
• E)None of the choices are correct.

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Definitions:

Mid-Ocean Ridge

An underwater mountain range, formed by plate tectonics, that stretches across the ocean floor and is associated with seismic and volcanic activity.

Plate Boundary

Zone of tectonic activity, including earthquakes, along the boundary between two lithospheric plates that are moving relative to one another.

Southern Continent

A hypothetical or specified landmass located in the southern hemisphere of a planet.

Oceanic Plateau

A large, flat, elevated region in the ocean basin, often composed of thickened crust that rises above the surrounding seafloor.