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 transactions discussed in Chapter 3 are called adjustments. Revenues that have been earned this period, but not as yet recorded. Example: a service has been performed in March, but the customer has not been billed. Under accrual accounting rules, that revenue must be reflected in the income statement for March. Expenses that have been incurred, but not yet recorded.