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.

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Definitions:

Optimistic Personality

A personality trait characterized by a general expectation that good things will happen or believing that the future will be favorable because one can control important outcomes.

Oxytocin

A hormone and neurotransmitter often associated with social bonding, reproduction, and childbirth.

Serotonin

Serotonin is a neurotransmitter that plays a key role in regulating mood, appetite, and sleep, among other functions.

Emotion-focused Coping

Strategies aimed at managing the emotional response to a problem, rather than tackling the problem itself.