Which of the Following Taxpayers Is Required to Use the Accrual

question 17

Multiple Choice

Which of the following taxpayers is required to use the accrual method of accounting?

• A)A retail business with average annual gross receipts of $800,000.
• B)A medical doctor with average annual gross receipts of $2 million.
• C)An insurance agency with average annual gross receipts of $2 million.
• D)All of the above are required to use the accrual method.
• E)None of the above is required to use the accrual method.

---

Definitions:

Ergonomics

The study and design of equipment, systems, and processes to optimize human health, comfort, and performance in the workplace.

Physical Demands

Refers to the effort, strength, and endurance required for someone to perform a specific job or task.

Task Variety

Refers to the degree of diversity and difference in the types of tasks or assignments an individual or group performs.

Prosocial Motivation

The desire to benefit others or contribute to the welfare of a group or society.