As a General Rule,C Corporations Must Use the Cash Method

question 60

True/False

As a general rule,C corporations must use the cash method of accounting.However,under several exceptions to this rule (e.g.,average annual gross receipts of $5 million or less for the most recent 3-year period),a C corporation can use the accrual method.

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Definitions:

Management

The process of planning, organizing, leading, and controlling resources to achieve organizational goals efficiently and effectively.

Total Factory Overhead Cost Variance

The difference between actual factory overhead expenses and the budgeted or standard costs associated with those overheads.

Direct Labor Rate Variance

The difference between the actual cost of direct labor and the expected (or standard) cost, used as a measure of performance in variance analysis.

Actual Rate

The actual interest rate or return that is earned or paid on an investment, loan, or other financial product.