Which of the Following Partnerships Can Elect the Cash-Basis Method

question 36

Multiple Choice

Which of the following partnerships can elect the cash-basis method of accounting?

• A)a CPA firm with average revenues of $20 million
• B)a chocolate manufacturer with average revenues of $3 million
• C)a cleaning service partnership generating average revenues of $5.5 million whose partners are Joe,Larry and Smith Inc.
• D)None of the above.

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Definitions:

Workers' Compensation Insurance

Insurance that provides medical benefits and wage replacement to employees injured on the job.

FUTA

This Act enforces a payroll tax on enterprises to finance state labor agencies, known as the Federal Unemployment Tax Act.

SUTA

State Unemployment Tax Act, which mandates unemployment insurance taxes that employers must pay.

Workers' Compensation

A type of insurance that offers medical benefits and replaces wages for workers hurt while performing their job duties.