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Which One of the Following Entities Cannot Use the Cash

Question 32

Multiple Choice

Which one of the following entities cannot use the cash method for tax purposes in 2019?


A) A large almond farm with $40 million in average annual gross receipts.
B) A corporation with $24 million in average annual gross receipts and 200 employees.
C) A law firm operating as a personal service corporation with $5.4 million in average annual gross receipts.
D) A small sole proprietorship with $150,000 in average annual gross receipts.
E) All of these may use the cash method.

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