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Accrual-Basis Accounting Is Superior to Cash-Basis Accounting in That

Question 37

Multiple Choice

Accrual-basis accounting is superior to cash-basis accounting in that:


A) it provides a better measure of profitability.
B) a statement of cash flows is not needed.
C) the cash balance reported will be greater.
D) there is only one method of preparing the operating activities of the statement of cash flows.

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