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

question 38

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 $23 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:

Repetitive Activities

Actions or tasks that are performed in a similar manner on a regular basis.

Leadership Development

Programs or activities designed to enhance the leadership skills and abilities of individuals within an organization to better meet future challenges and lead teams effectively.

Orientation

The process of introducing new employees to their job, colleagues, and the organization, providing them with necessary information to start working.

Succession Management

The process of identifying and developing internal personnel with the potential to fill key leadership positions within the organization.