Under cash-basis accounting,accounts receivable is increased when a company makes a sale on account.

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Under cash-basis accounting, revenue is only recognized when cash is received, so no entry is made for accounts receivable when a sale is made on account. Accounts receivable would only be recorded under accrual accounting where revenue is recognized when earned, regardless of when payment is received.

Under Cash-Basis Accounting,accounts Receivable Is Increased When a Company Makes