Which of the following statements is accurate regarding cash and accrual accounting methods?

Accrual accounting can be used to reduce tax expenses by timing purchases of inventory and expenses.

A company can switch back and forth between the two methods as long as they inform the IRS.

Most physician practices use accrual accounting because third-party payers like insurance companies are so slow in making payments.

Cash accounting is used by most publically traded companies because the SEC requires it.