Which of the Following Businesses Is Prohibited from Using the Cash

question 61

Multiple Choice

Which of the following businesses is prohibited from using the cash receipts and disbursement method of accounting for tax purposes?

• A) Partnership with two individual partners with $9 million average annual gross receipts
• B) Personal service corporation with $8 million average annual gross receipts
• C) Corporation with $3 million average annual gross receipts
• D) None of the businesses are prohibited from using the cash method

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Definitions:

GDPs

Short for Gross Domestic Products, it refers to the total market value of all final goods and services produced within a country in a given period of time.

Productivity Growth

Productivity growth measures the increase in the output of goods and services per unit of input over time, reflecting improvements in efficiency and economic health.

Sustained Economic Growth

A prolonged period of increase in the goods and services produced by an economy, indicating health and prosperity.

Living Standards

A measure of the wealth, comfort, material goods, and necessities available to individuals or societies.