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:

Big Five

A theory describing human personality as composed of five broad dimensions: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Personality Traits

Enduring characteristics that describe an individual's behavior, attitude, and emotions, which are consistent across various situations.

Extraversion

A personality trait characterized by sociability, talkativeness, assertiveness, and high levels of activity and enthusiasm.

Conscientiousness

A personality trait characterized by being thorough, careful, or vigilant; entails a desire to do a task well.