Andrew Owns 100% of the Stock of Crow's Farm Inc

question 12

Multiple Choice

Andrew owns 100% of the stock of Crow's Farm Inc., an S corporation, that raises cattle and corn. The farm's annual gross receipts have never exceeded $3 million and the farm is not considered a tax shelter.

• A)The farm must report its sales and cost of goods sold by the accrual method because inventories are material to the business.
• B)The income from the farm may be reported by the cash method.
• C)The income from the sales of cattle may be reported by the cash method, but the income from the sales of corn must be reported by the accrual method.
• D)The income from the sales of corn may be reported by the cash method, but the income from cattle sales must be reported by the accrual method.
• E)None of the above.

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Definitions:

Supermarket Strategies

Marketing and operational tactics employed by supermarkets to attract customers, enhance shopping experiences, and increase sales.

Systematic Error

A consistent, predictable error present in the results of measurements or observations, caused by factors that do not change over time.

Neoclassical Economics

An economic theory that focuses on how individuals' rational behavior and efficient markets lead to an allocation of resources that maximizes utility and profit.