A C corporation provides lawn maintenance services to various businesses and homeowners. The corporation has average annual gross receipts of $3,500,000. The corporation may use the cash method of accounting.

Question

Quizplus · Accepted Answer

According to the IRS, C corporations with average annual gross receipts of less than $5,000,000 are eligible to use the cash method of accounting. Therefore, this corporation with $3,500,000 in gross receipts qualifies for the cash method.

A C Corporation Provides Lawn Maintenance Services to Various Businesses