Which of the following statements regarding the accrual basis of accounting is true? ...
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Accounting
Which of the following statements regarding the accrual basis of accounting is true? A It records transactions only when cash is received or paid. B It records revenue when it is earned and expenses when they are incurred, regardless of when cash is exchanged. C It is primarily used by small businesses and individuals for tax purposes. D It provides a more accurate representation of a company's financial position compared to the cash basis of accounting.
Which of the following statements regarding the accrual basis of accounting is true?
A It records transactions only when cash is received or paid.
B It records revenue when it is earned and expenses when they are incurred, regardless of when cash is exchanged.
C It is primarily used by small businesses and individuals for tax purposes.
D It provides a more accurate representation of a company's financial position compared to the cash basis of accounting.
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