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which business is exempt from using the accrual basis for accounting

which business is exempt from using the accrual basis for accounting
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Answer #1

Accrual Accounting is based on one of the principles of accounting, namely matching principle. Under accrual accounting, revenues are reported when they are earned and expenses are reported when incurred, irrespective of the time of cash received or paid.

As per the latest amendments, any business organization with average annual gross receipts being less than $25,000,000 in the preceeding three years are exempt from using the accrual basis for accounting.
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