Which of the Following Businesses Must Use the Accrual Method

question 53

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 $30,000,000.
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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:

Lifestyle Aspiration

The goals or standards of living that an individual or group strives to achieve, often influenced by cultural, social, and economic factors.

Considerable Equity

Significant ownership interest or stake in an asset or company, often implying a large amount of invested capital or value.

Brand Awareness

The extent to which consumers recognize and are familiar with a brand and its products or services.

Increasing Depth

Enhancing the range or complexity of a topic, product line, or area of knowledge to provide more detail or options.