Who must use accrual accounting?

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Solution

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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