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:

Intuitive Basis

A decision-making approach based on instinct and personal perceptions rather than data-driven or analytical processes.

Legal Ramifications

The potential legal consequences or outcomes that could result from actions or decisions in a societal or personal context.

Overlooking Logic

The act of ignoring rational or sound reasoning in decision-making processes.

Ambiguity And Contradictions

Situations or statements that contain unclear, conflicting, or contradictory information, often leading to confusion or misunderstanding.