Corporations generally are required to use the accrual method of accounting.

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Quizplus · Accepted Answer

This is true. Under the Generally Accepted Accounting Principles (GAAP), corporations are required to use the accrual method of accounting, which recognizes revenues and expenses when they are earned and incurred, regardless of when the cash is actually received or paid. This method provides a more accurate picture of a company's financial health than cash basis accounting.

Corporations Generally Are Required to Use the Accrual Method of Accounting