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:

Socialization Practices

Methods and processes used to integrate newcomers into an organizational culture and acquaint them with their new roles.

Continuance Commitment

The level of commitment an individual feels to an organization based on the costs they perceive in leaving it.

Normative Commitment

An individual's psychological attachment to an organization, characterized by a feeling of obligation to remain with the organization.

Affective Commitment

The emotional attachment an employee feels towards their organization, influencing their willingness to remain a part of it.