Shop Right Grocery Store: Accrual-Based Accounting

Per the assignment, I will discuss why I think Shop Rite grocery store use the accrual based accounting method rather than cash based accounting.
Here are some facts about grocery stores that contributed to my decision to choose a shop rite supermarket store as my example.
Shop Rite a (co-op) super markets has many stores in the Northeastern United States. Let’s look at some facts about Grocery stores, and why I think they use accrual based accounting. Just the sheer size of Shop Rite grocery stores coupled with the number of employees they employ dictate the type of formula that is recommended by the Internal Revenue Service.
Per the bureau of labor statistic, the voice of food retail research resources. (n.d.) “grocery stores have a
Based on cause and effect relationship between sales, products and what customers are willing to purchase. For example, accuracy of cash and accrual basis. (n.d.) “If a business spent $20,000 to produce products intended for sale, the entire sum is recorded as a one-time expense under cash basis accounting once the cash exchanges hands; even if the products are sold piecemeal across eight subsequent months. In contrast, “accrual” basis accounting records the initial production as an exchange of cash for products intended for sale and then record their acquisition costs as expenses as each individual unit are sold and the deduction is made from their asset account”. This is an example of how revenue is earned where products are delivered and cash is received. If you're a large wholesale business and deal with inventory, the Internal Revenue Service generally requires that you be on the accrual basis. Additionally, it is clearer for businesses to show accountability for what is purchased or sold by calculating accounts payable, or receivables to track sales or