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.
An exception to the requirements to use an accrual method and to account for inventories is found in Revenue Procedure 2001-10 (PDF), which permits most small businesses with average annual gross receipts of $1 million or less to use the cash method of accounting.