In general,corporations that maintain inventory for sale to customers may use either the cash or accrual method of accounting for determining sales and cost of goods sold.

Question

Quizplus · Accepted Answer

As a general rule,corporations that maintain inventory for sale to customers are required to use the accrual method of accounting for determining sales and cost of goods sold.The cash method may be used for other income and expense items.

In General,corporations That Maintain Inventory for Sale to Customers May