Which of the Following Statements Is Always True Regarding Accounting

question 11

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 $3 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:

Group Harmony

The degree of agreement, peace, and unity within a group, facilitating cooperative and smooth interactions.

Social Exchange Theory

A conceptual framework suggesting that social behavior is the result of an exchange process aiming to maximize benefits and minimize costs.

Norm Of Reciprocity

A social expectation that people will respond to each other in kind, returning benefits for benefits and responding with either indifference or hostility to harms.

Transformational Leaders

Leaders who inspire and motivate their followers by presenting a compelling vision of the future, fostering an environment of intellectual stimulation, and demonstrating personal attention to each member's needs and development.