Large corporations are allowed to use the cash method of accounting for at least the first two years of their existence.
A corporation may not use the cash method of accounting in the second year if it reported more than $5 million in gross receipts in the first year.

Question

Quizplus · Accepted Answer

Large corporations are generally required to use the accrual method of accounting, especially if they exceed certain gross receipts thresholds, such as $5 million.

Large Corporations Are Allowed to Use the Cash Method of Accounting