Alvin,a practicing attorney who also owns an office supplies store,may use the cash basis for his practice and the accrual basis for his office supplies store.

Question

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Alvin can choose to use different accounting methods for different businesses or activities. The cash basis is a simple accounting method that records income and expenses when they are received and paid, while the accrual basis matches income and expenses to the period in which they are earned or incurred, regardless of when payment is received or made. It is common for small business owners to use the cash basis for their main business and the accrual basis for their inventory-based or retail business.

Alvin,a Practicing Attorney Who Also Owns an Office Supplies Store,may