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.
Companies using accrual accounting method need to adhere to revenue recognition principles proposed by Generally Accepted Accounting Principles (GAAP). The method states that companies may recognize revenue and income only in the same accounting period in which they were earned.