Which One of the Following Entities Cannot Use the Cash

question 56

Multiple Choice

Which one of the following entities cannot use the cash method for tax purposes?

• A)A large almond farm with $40 million in gross receipts.
• B)A continuing education provider with $20 million in gross receipts and 200 employees.
• C)A law firm operating as a personal service corporation with $5.4 million in gross receipts.
• D)A small sole proprietorship with $150,000 in gross receipts.
• E)All of the above may use the cash method.

---

Definitions:

Fee-For-Pay

A pricing model where services are provided and charged based on specific transactions or uses rather than a subscription or blanket fee.

Out-Of-Pocket Costs

Expenses for medical care that aren't reimbursed by insurance, including deductibles, co-payments, and coinsurance.

Outpatient Facilities

Medical centers or clinics where patients receive treatment without being admitted overnight, including diagnostic services and minor surgical procedures.

Rising Health Care Costs

The increasing expenses associated with medical care services and products.