Why is that large businesses that have a lot of accounts receivable an

QUESTION

Why is that large businesses that have a lot of accounts receivable and payable cannot use the cash basis of accounting?

A) It doesn’t give them an accurate picture of their net profits for a set period.
B) The law says that such business cannot use the cash basis of accounting.
C) The cash basis of accounting is too complex for large businesses to use.
D) They don’t have IT systems designed to handle the cash basis of accounting.

ANSWER

A