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

question 71

Multiple Choice

TQK,LLC provides consulting services and was formed on 1/31/X5.Aaron and ABC,Inc.each hold a 50% capital and profits interest in TQK.If TQK averaged $7,000,000 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:

Money Markets

Financial markets for short-term borrowing and lending, dealing with assets that have high liquidity and short maturities.

Capital Market Instruments

Financial securities used in the capital markets to raise funds or investment, including stocks, bonds, debentures, and other vehicles.

Commercial Loan

A debt-based financial agreement between a business and a financial institution, used for funding major capital expenditures or operational costs.

Money Market Mutual Funds

Money Market Mutual Funds are investment funds that invest in short-term debt securities and aim to provide returns with minimal risk.