Final answer:
The statement is false; sophisticated organizations prefer the accrual method of accounting over the cash method because it offers a more accurate representation of a company's financial position.
Step-by-step explanation:
The statement that “given today's importance of cash control, cash method accounting is preferred in most sophisticated organizations” is false. While cash method accounting is useful for its simplicity, especially for smaller organizations with straightforward financial transactions, it is typically not the method preferred by more sophisticated or larger organizations. Instead, the accrual method of accounting is commonly used because it provides a more accurate picture of a company's financial health by recognizing income and expenses when they are incurred, not just when cash is exchanged.
The cash method may help in immediate cash control, but it can misrepresent long-term financial stability and performance. Hence, the accrual method is often required by regulators for publicly-traded companies and is the preferred method for businesses that need to provide financial statements to external stakeholders.