Corporations Generally Are Required to Use the Accrual Method of Accounting

question 10

True/False

Corporations generally are required to use the accrual method of accounting.

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Definitions:

Relative Permanence

The quality of a negotiable instrument that ensures its longevity.

Writing Requirement

The writing requirement refers to legal stipulations that certain types of agreements or contracts must be documented in written form to be legally valid.

Drawer

A drawer is a person or entity that issues or writes a check or draft, instructing a bank or similar institution to pay a specific amount of money to a designated party.

Drawee

The party on whom a cheque or draft is drawn, responsible for paying the specified amount on the instrument.