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.
A quick way to convert the cash basis net. income of $18,000 to the accrual-adjusted in-. come of $46,000 is simply to add or subtract the. various net changes in inventories, accounts. receivable, accounts payable, and other noncash. transactions that affect the true profitability of. the operation.