TQK, LLC Provides Consulting Services and Was Formed on 1/31/X5

Multiple Choice

TQK, LLC provides consulting services and was formed on 1/31/X5. Aaron and ABC, Inc. each hold a 50% capital and profits interest in TQK. If TQK averaged $7,000,000 in annual gross receipts over the last three years, what accounting method can TQK use for X9?

A) Accrual method
B) Cash method
C) Hybrid method
D) Either accrual method or cash method