TQK,LLC, Provides Consulting Services and Was Formed on 1/31/X5

question 121

Multiple Choice

TQK,LLC, provides consulting services and was formed on 1/31/X5. Aaron and ABC, Incorporated, each hold a 50percent capital and profits interest in TQK. If TQK averaged $29,000,000 in annual gross receipts over the last three years, what accounting method can TQK use for X9?

• A)Accrual method
• B)Cash method
• C)Hybrid method
• D)Accrual method or cash method

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Definitions:

Policy Advisers

Experts who offer advice on public or corporate policy to decision-makers.

Microeconomics

The branch of economics that studies the behavior of individuals and small impacting organizations in making decisions on the allocation of limited resources.

Households

An economic unit of one or more persons living together who make joint decisions on consumption and savings.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, typically measured by the rise in the Gross Domestic Product (GDP).