The cash method can be used even if inventory and cost of goods sold are an income producing factor in the business.

Name: The cash method can be used even if inventory and cost of goods sold are an income producing factor in the business.
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Question

Quizplus · Accepted Answer

The cash method is generally not allowed for businesses where inventory is a significant income-producing factor, as it does not accurately reflect income and expenses related to inventory.

The Cash Method Can Be Used Even If Inventory and Cost