Which of the following types of transactions may not typically be accounted for using the cash method for small proprietorships?
A) Sales of inventory
B) Services
C) Sales of securities by an investor
D) Payments of debt
E) All of the choices can be accounted for using the cash method.

Question

Quizplus · Accepted Answer

Inventory need not be accounted for using the accrual method if the taxpayer has average annual gross receipts of $25 million or less for the prior three taxable years.

Which of the Following Types of Transactions May Not Typically