Multiple Choice $3-6$

Inventories $($LO $3\mathrm{.}2)$

A small business that qualifies for the cash method may use which method to account for inventory?

a$.$ Under the accrual method.

b$.$ Treat as non$-$incidental materials and supplies.

c$.$ Treat the same as books and records if no applicable financial statements exist.

d$.$ Treat the same as in the applicable financial statements.

e$.$ All of these choices are suitable for accounting for inventory.