C Corporations with Annual Average Gross Receipts of $25 Million

question 55

True/False

C corporations with annual average gross receipts of $25 million or more are allowed to use the cash method of accounting for at least the first two years of their existence.

---

Definitions:

Collusion

A secret agreement or cooperation among parties for a fraudulent, illegal, or deceitful purpose, especially to manipulate prices or competition in the market.

Merchandise Management

It involves the planning and control of the purchasing, handling, storage, and sale of goods in a retail setting to maximize profits.

Cash Registers

Electronic or mechanical devices used to calculate and record sales transactions, and to store cash for daily business operations.

Internal Control

Methods and protocols established by an enterprise to protect the veracity of its financial and accounting reports, support ethical conduct, and prevent malfeasance.