As a general rule,C corporations must use the cash method of accounting.However,under several exceptions to this rule (e.g.,average annual gross receipts of $5 million or less for the most recent 3-year period),a C corporation can use the accrual method.

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C corporations are generally required to use the accrual method of accounting, but there are exceptions that allow them to use the cash method, such as having average annual gross receipts of $25 million or less for the most recent 3-year period.

As a General Rule,C Corporations Must Use the Cash Method