Which of the Following Businesses Must Use the Accrual Method

Multiple Choice

Which of the following businesses must use the accrual method of accounting?
I.Pryor and Ransom, a local law firm with annual gross receipts of $650,000.
II.Mayson Manufacturing, which has annual gross receipts of $30,000,000.
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A) Only statement I is correct.
B) Only statement II is correct.
C) Both statements are correct.
D) Neither statement is correct.