All taxpayers may use the accrual method of determining income but certain taxpayers may not use the cash method.

Question

Quizplus · Accepted Answer

The accrual method of accounting is generally available to all taxpayers, but the cash method is restricted for certain types of businesses, such as corporations and partnerships with corporate partners that have average annual gross receipts over a specified threshold, and tax shelters.

All Taxpayers May Use the Accrual Method of Determining Income