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.
In accrual accounting, an asset is recognized as soon as the firm has legal ownership, the asset value can be reasonably estimated and, if applicable, when collectibility can be reasonably assured. It is important to note that the transfer of cash has no bearing on when an asset is recognized.