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:

Ethology

The scientific study of animal behavior, often with a focus on behaviors that are innate and observed in natural environments.

Biological Emphasis

An approach focusing on the genetic, neurological, and physical aspects of behavior and mental processes.

Freudian Theory

A psychological framework developed by Sigmund Freud that emphasizes unconscious motivations and conflicts as drivers of human behavior.

Population Density

The measure of the number of individuals living per unit area, often used to understand how crowded an area is.