Question 35 of 75. Generally, all of the following are true regarding a qualified joint venture (QJV) in a non-community property state EXCEPT: The only members of the joint venture are spouses (a married couple) who file a joint return. O Both spouses elect not to be treated as a partnership. Both spouses are registered with the state as a business entity. O Both spouses materially participate in the trade or business. Mark for follow up Question 36 of 75. Which of the following statements accurately describes the accrual method of accounting? Businesses that have inventory generally must not use the accrual method to account for the inventory, unless they are a small business taxpayer. Only income and expenses actually or constructively received or paid during the year are reported. Income is recorded as sales revenue when the sale is made, even if payment has not been received for goods or services that have been sold. O Transactions are only recorded when cash is actually transferred or received