A C corporation provides office janitorial services to various businesses.The corporation has average annual gross receipts of $3,500,000.The corporation cannot use the cash method of accounting.

Question

Quizplus · Accepted Answer

According to the IRS, a C corporation with average annual gross receipts of $25 million or less for the prior three-year period may use the cash method of accounting. Since the corporation's annual gross receipts are $3,500,000, it is eligible to use the cash method of accounting.

A C Corporation Provides Office Janitorial Services to Various Businesses