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.
Most businesses that have sales of less than $5 million per year are free to choose which accounting method to adopt. But if your business stocks an inventory of items that you will sell to the public, the IRS requires you to use the accrual accounting method.