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:

Experimental Group

In research, a group of subjects who are exposed to the variable under investigation to assess its effect.

Potential Confound

A variable that could distort the results or conclusions of a study or experiment by intermingling its effects with those of the variables of interest.

Background Music

Music that is played in the background and is not meant to be the main focus of an audience.

Truck Loaders

Workers or machinery that specialize in loading goods onto trucks for transportation.