Which of the Following Businesses Must Use the Accrual Method

question 49

Multiple Choice

Which of the following businesses must use the accrual method of accounting?
I.Champion Mortgage Corporation,which has annual gross receipts of $10,000,000.
II.The Happy Bookworm,a local bookstore with annual gross receipts of $950,000.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Harmony

A pleasing combination or arrangement of different things, often referring to a state of agreement or tranquility.

Dominate

To have control or power over; to be the most influential factor in.

Function

In mathematics and computer science, a specific relation or expression involving one or more inputs and a single output.

Anal Stage

A phase in Freud's psychosexual development theory where pleasure is focused on the anal region and issues around control and order arise.