In General, a Corporation Can Elect to Use Either the Accrual

question 98

True/False

In general, a corporation can elect to use either the accrual or cash method of accounting no matter how large the corporation.
Large corporations (average gross receipts exceeding $5 million over the prior three years) are required to use the accrual method.

Understand the relationship between nominal and effective interest rates.

Calculate the time required for an investment to reach a specific value under compound interest.

Calculate the nominal rate of interest based on compounding periods.

Analyze and calculate the rate of return on different types of investment vehicles.

---

Definitions:

Ponzi Scheme

A fraudulent investing scam promising high rates of return with little risk to investors, which generates returns for earlier investors by acquiring new investors.

Fictitious Sources

Information or references claimed in a work or argument that do not actually exist; often used to mislead or fabricate support.

Necessity Defense

A legal defense asserting that a criminal act was justified because it was necessary to prevent a more serious harm.

Necessity

An affirmative defense in which the defendant tries to prove that he or she was acting to prevent imminent harm and that there was no legal alternative to the action the defendant took.