Which business is exempt from using the accrual basis for accounting? A computer software company that has average gross annual receipts of $40 million over the last three years.

A retail store that grossed $32 million in 2018, which was its first year in business.

A construction contractor who does not have any outstanding accounts receivable at the end of the tax year.

A toy store that just began business last year and had $1.2 million in gross receipts.