Which of the following must use the accrual method of accounting? $50 million.
A)All of these must use the accrual method.
B)None of these must use the accrual method.
C)Only I and II must use the accrual method.
D)Only I and III must use the accrual method.
E)Only III must use the accrual method.

Question

Quizplus · Accepted Answer

The incorporated property management company must use the accrual method.The incorporated law firm is required to use the accrual method because its gross receipts exceed $5 million.The grocery store cannot use the cash method under the small business exception (average annual gross receipts of $1 million or less).

Which of the Following Must Use the Accrual Method of Accounting