Alice, Inc., is an S corporation that has been in business for 18 years.Its annual gross receipts have never exceeded
$25 million.The corporation operates a retail store and also owns rental property.The sales from the retail store and the rental income may be reported by the cash method.

Question

Quizplus · Accepted Answer

S corporations with annual gross receipts of less than $25 million are generally allowed to use the cash method of accounting for their business transactions, including retail store sales and rental income.