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 bottom line for using accrual and then do the reversal, is when you are not sure about the exact expenditure or income amount, but you do the posting based on estimation (popularly called provisions).This has to be reversed when you will post the actual expense or revenue.ou can do the same for the next 2 months as well. You will post the actual expense when you will know the exact amount of tax to be paid quarterly. The accrual accounting principle is that you don't just reflect the expense or revenue when the cash is settled, but when the business activity is performed.