The modified cash basis of accounting combines aspects of the cash method of accounting and the accrual method of accounting.

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The modified cash basis of accounting uses elements of both the cash and accrual methods of accounting. It applies cash accounting for some transactions and accrual accounting for others. This approach allows for a more accurate representation of a company's financial status than cash accounting alone, while still being simpler and less time-consuming than full accrual accounting.

The Modified Cash Basis of Accounting Combines Aspects of the Cash