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What Is the Cash Basis of Accounting

Question 2

Multiple Choice

What is the cash basis of accounting?


A) A method of accounting that records accounting transactions based on economic substance.
B) A method of accounting that requires accruals for amounts due or outstanding at year-end.
C) A method of accounting that records transactions only when cash is received or paid.
D) An entry that reflects events in a period different from their corresponding cash flow.

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