Which of the Following Taxpayers Is Required to Use the Accrual

question 58

Multiple Choice

Which of the following taxpayers is required to use the accrual method of accounting?

• A)A retail business with average annual gross receipts of $8,000,000.
• B)A medical doctor with average annual gross receipts of $2 million.
• C)An insurance agency with average annual gross receipts of $5 million.
• D)All of these are required to use the accrual method.
• E)None of these is required to use the accrual method.