Question
Asked Dec 16, 2019
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Which of the following is true of accrual basis accounting and cash basis accounting?

  • Accrual accounting records revenue only when it is earned.
  • Accrual accounting is not allowed under GAAP.
  • Cash basis accounting records all transactions.
  • All of the above are true.
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Expert Answer

Step 1

Accrual basis: Accrual basis is a method of accounting. In this method recording of revenues are done when they are earned and recording of expenses when they are incurred.

 

Cash ...

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Accounting Principles

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