Final answer:
False. Most companies in the same industry do not necessarily choose the same accounting method.
Step-by-step explanation:
False
Most companies in the same industry do not necessarily choose the same accounting method. The choice of accounting method can depend on various factors such as the company's size, nature of operations, and applicable accounting standards. Different companies may opt for different methods such as cash basis, accrual basis, or hybrid methods depending on their specific needs and circumstances.
For example, a small retail business may choose cash basis accounting because it is simpler and reflects their day-to-day cash inflows and outflows. On the other hand, a manufacturing company may choose accrual basis accounting to better match revenues and expenses for better financial reporting and decision-making.