Question 35 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. Income is recorded as sales revenue when the sale is made, even if the payment has not been received for goods or services that have been sold. Only income and expenses actually or constructively received or paid during the year are reported. Transactions are recorded only when cash is actually transferred or received