Which of the Following Taxpayers Is Required to Use the Accrual

question 80

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 these are required to use the accrual method.
• E)None of these is required to use the accrual method.

---

Definitions:

Ninth Amendment

The Ninth Amendment to the United States Constitution addresses rights, retained by the people, that are not specifically enumerated in the Constitution.

Right to Privacy

A legal principle that protects individuals from unwarranted governmental intrusion into their personal and private affairs.

Due Process Standards

Legal principles ensuring fair treatment through the normal judicial system, especially as a citizen's entitlement.

Antiterrorism and Effective Death Penalty Act

A 1996 U.S. law that tightened the standards for habeas corpus, aimed at reducing terrorism and streamlining the death penalty process.