Question

Who must use accrual accounting?

Answer 1

Businesses that have an inventory must use accrual accounting as their preferred method while businesses that have an annual revenue of more than 25 million need to follow accrual accounting.

Also read:

• Difference Between Cash Basis and Accrual Basis of Accounting
• Accrual Basis of Accounting
• GAAP Generally Accepted Accounting Principles
• Difference Between GAAP and IFRS

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