Which of the Following Statements Is Always True Regarding Accounting

question 88

Multiple Choice

Which of the following statements is always true regarding accounting methods available to a partnership?

• A)If a partnership is a tax shelter, it can use the cash method of accounting.
• B)If a non-tax-shelter partnership had "average annual gross receipts" of less than $5 million in all prior years, it can use the cash method.
• C)If a partnership has a partner that is a personal service corporation, it cannot use the cash method.
• D)If a partnership has a partner that is a C corporation, it cannot use the cash method.
• E)All of the above statements are false.

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Definitions:

Normal Distribution

A probability distribution that is symmetrically centered around the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

Vertical Blinds

Window coverings consisting of vertical slats that can be adjusted to control light and visibility.

Null Hypothesis

A statistical hypothesis that assumes no significant difference or effect in a particular situation, serving as the default assumption to be tested against an alternative hypothesis.

Alternative Hypothesis

A statistical hypothesis that specifies a population parameter's value is different from the value stated in the null hypothesis.