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

question 53

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) Either accrual method or cash method

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Definitions:

Self-Disclosure

The act of sharing personal, private, or sensitive information about oneself with others.

Emotional Expressiveness

The ability or tendency to express one's feelings and emotions openly or effectively.

Rapport

A close and harmonious relationship in which the people or groups concerned understand each other's feelings or ideas and communicate well.

Reactance

A psychological response where an individual feels resistant or defensive when they perceive their freedom of choice is being restricted.