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The Ability to Use a Reserve for Unpaid Amounts Gives

Question 8

Essay

The ability to use a reserve for unpaid amounts gives results that are similar to those that would result from using the cash basis of revenue recognition. However, there are constraints on the use of this reserve that prevent achieving results that are identical to those that result from using cash based revenue recognition. Describe these constraints.

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As described in the text, the constraint...

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