Tammy operates a small manufacturing business that is organized as an S corporation.The business has gross receipts of $8 million.Tammy may use the cash method of accounting for her business inventory.

Question

Quizplus · Accepted Answer

S corporations are allowed to use cash method of accounting for inventory if their gross receipts are less than $25 million over the past three years. As Tammy's business has gross receipts of $8 million, she may use cash method of accounting for her business inventory.

Tammy Operates a Small Manufacturing Business That Is Organized as an S