Which of the Following Statements Is Always True Regarding Accounting

question 108

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 less than $25 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 always true.

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Definitions:

First Officer

In aviation, the pilot second-in-command of an aircraft, assisting the captain and ready to take over responsibilities if needed.

Flying Too High

Often alludes to overconfidence or arrogance that can lead to risky behavior or decisions, risking a fall from success or favor.

Closed Group

A type of group with fixed membership where entry is restricted to certain individuals.

Social Needs

The human desire for belonging, intimacy, and interpersonal relationships, situated mid-level in Maslow's hierarchy.