Which of the Following Must Use the Accrual Method of Accounting

question 62

Multiple Choice

Which of the following must use the accrual method of accounting? I.
A property management company, operating as a C corporation, with average annual gross receipts of $50 million.
II)
An incorporated law firm with average annual gross receipts of $6 million.
III)
An unincorporated grocery store with average annual gross receipts of $1,200,000.

• A)All of the above must use the accrual method.
• B)None of the above must use the accrual method.
• C)Only I and II must use the accrual method.
• D)Only I and III must use the accrual method.
• E)Only III must use the accrual method.

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Definitions:

Square Feet

A unit of area measurement equivalent to a square measuring one foot on each side.

Patients Who Smoke

Individuals receiving medical care who have the habit of smoking tobacco, which may affect their health outcomes.

Specialty Items

Products or goods that are distinct or unique to a specific field, industry, or interest.

Greatest Amount

The highest value or quantity attainable or recorded.