Which of the Following Businesses Must Use the Accrual Method

question 101

Multiple Choice

Which of the following businesses must use the accrual method of accounting?
I.Pryor and Ransom,a local law firm with annual gross receipts of $650,000.
II.Mayson Manufacturing,which has annual gross receipts of $20,000,000.
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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:

Maturational Factors

Elements affecting growth and development that are inherent to an individual, such as genetic influences and the natural aging process.

Sociocultural Factors

Aspects of society and culture that influence an individual's behavior, preferences, and health.

Natural Disaster

Severe and sudden events caused by environmental factors such as earthquakes, hurricanes, floods, and fires that lead to significant harm to people, property, and the natural environment.

Reticular Formation

A network of nerve pathways and nuclei in the brainstem that regulates arousal, wakefulness, and sleep-wake transitions.