Question
WFO Corporation has gross receipts according to the following schedule: Year 1 $22.00 million Year 2 $24.00 million Year 3 $26.00 million Year 4 $24.50
WFO Corporation has gross receipts according to the following schedule:
Year 1 $22.00 million Year 2 $24.00 million Year 3 $26.00 million Year 4 $24.50 million Year 5 $25.00 million Year 6 $27.00 million
If WFO began business as a cash-method corporation in Year 1, in which year would it have first been required to use the accrual method?
Multiple Choice
- Year 3.
- Year 4.
- Year 5.
- Year 6.
- None of the choices are correct.
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Accounting Volume 2
Authors: James Reeve, Jonathan Duchac, Sheila Elworthy, Carl S. Warren
2nd Canadian edition
176501452, 978-0176501457, 978-0176509743
