Which of the Following Must Use the Accrual Method of Accounting

question 62

Multiple Choice

Which of the following must use the accrual method of accounting? I.
A property management company, operating as a C corporation, with average annual gross receipts of $50 million.
II)
An incorporated law firm with average annual gross receipts of $6 million.
III)
An unincorporated grocery store with average annual gross receipts of $1,200,000.

• A)All of the above must use the accrual method.
• B)None of the above must use the accrual method.
• C)Only I and II must use the accrual method.
• D)Only I and III must use the accrual method.
• E)Only III must use the accrual method.

Apply linear regression analysis to estimate rental prices or property values based on variable inputs.

Estimate costs of home improvement projects, including accounting for materials and taxes.

Identify various fees and costs associated with closing on a home purchase.

Understand the ideal time frame and methods for test preparation.

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Definitions:

Wrongful Act

An act that is illegal or immoral, leading to legal liability or moral condemnation.

Similarly Affected

A phrase used to describe individuals or entities that experience the same or similar impacts from an event or action.

Shareholders

Individuals or entities that own shares in a corporation, giving them certain rights such as voting on corporate matters.

Corporation

A legal entity that is separate and distinct from its owners, providing them with limited liability.