If inventory is a material amount,what method of accounting is acceptable for a sole proprietorship to use?
A)The cash method.
B)Accrual method.
C)Hybrid method.
D)Both Accrual method and Hybrid method.

Question

Quizplus · Accepted Answer

For a sole proprietorship, both the accrual method and the hybrid method are acceptable for accounting when inventory is a material amount. The accrual method accounts for transactions when they occur, regardless of when cash is exchanged, which is suitable for handling inventory. The hybrid method combines elements of both cash and accrual methods, allowing for flexibility in accounting practices, especially in handling inventory and non-inventory transactions.

If Inventory Is a Material Amount,what Method of Accounting Is