T Corporation manufactures the Banana, a clone of a popular computer.Its gross receipts for the last several years have averaged $4 million.Indicate which of the following statements is true with respect to the method of accounting that T can adopt.
A) The corporation may use the cash method to account for all receipts and disbursements.
B) The corporation must use the accrual method to account for all receipts and disbursements.
C) The corporation may use the cash method for some items and the accrual method for other items as it desires.
D) The corporation may use the cash method for some items but is required to use the accrual method for other items.
Correct Answer:
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