Any taxpayers may adopt the cash receipts and disbursements method, the accrual method, or a hybrid method of accounting for tax purposes.

Question

Quizplus · Accepted Answer

Not all taxpayers may freely choose among the cash, accrual, or hybrid methods of accounting for tax purposes. The choice of accounting method is subject to IRS rules and regulations, which may limit the availability of certain methods based on the taxpayer's type of business, revenue size, and other factors.

Any Taxpayers May Adopt the Cash Receipts and Disbursements Method