A retailing business may use the cash-basis method of accounting for purposes of determining sales and cost of goods sold if average gross receipts do not exceed $1 million.

Name: A retailing business may use the cash-basis method of accounting for purposes of determining sales and cost of goods sold if average gross receipts do not exceed $1 million.
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Question

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An exception to accrual basis for businesses which sell goods is provided if average gross receipts for the preceding three years is $1 million or less.

A Retailing Business May Use the Cash-Basis Method of Accounting