But Krauss said that from the moment he and the other scientists arrived on the island, they never saw anything untoward.
COMPANIES THAT FAIL THE $1 MILLION AVERAGE revenue test are not affected by the revenue procedure. For them, determining whether to use the cash or accrual method hinges on two issues: the material income-producing factor test and their type of entity. COMPANIES SELLING MERCHANDISE GENERALLY must use the accrual method to account for purchases and sales.
The accrual method of accounting allows you to match revenue with the expenses incurred to generate the revenue during the same accounting period. You recognize sales when they occur, not when you receive the money. You recognize expenses when you incur the liability, not when you pay the bill.