Which of the Following Businesses Is Prohibited from Using the Cash

question 106

Multiple Choice

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

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

---

Definitions:

Mean

An average of a set of numbers, calculated by dividing the sum of all the values by the number of values.

Z Score

A numerical calculation indicating how a specific value's distance from the group's average is expressed in multiple standard deviations.

Mean

The arithmetic average of a set of numbers, calculated by adding them all up and dividing by the quantity of numbers.

Standard Score

A score that expresses an individual's position relative to the mean, based on the standard deviation of the scores in the distribution.