Which of the Following Statements Is Always True Regarding Accounting

Multiple Choice

Which of the following statements is always true regarding accounting methods available to a partnership?

A) If a partnership is a tax shelter, it can use the cash method of accounting.
B) If a nontax-shelter partnership had average annual gross receipts of less than $25 million in for the last three tax years, it can use the cash method.
C) If a partnership has a partner that is a personal service corporation, it cannot use the cash method.
D) If a partnership has a partner that is a C corporation, it cannot use the cash method.
E) All of these statements are always true.