ark for Tow up Question 40 of 75. Which of the following statements accurately describes the accrual method of accounting? Businesses that have inventory generally must not use the accrual method to account for the inventory, unless they are a small business taxpayer. Only income and expenses actually or constructively received or paid during the year are reported. Income is recorded as sales revenue when the sale is made, even if payment has not been received for goods or services that have been sold Transactions are only recorded when cash is actually transferred or received. Mark for follow up Summary Next >> Return Later Mark for follow up Question 42 of 75. Karen has a qualified casualty loss of $11.900 on her personal use property located in a federally declared disaster area. Her adjusted gross income (AGI) is $100,000. What is Karen's allowable casualty loss? $1,180 $1,800 $10,610 $10,620 Mark for follow up