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2. Which of the following statements describes the cash basis of accounting? a) Revenues are recognized when cash is received, and expenses are recognized when

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2. Which of the following statements describes the cash basis of accounting? a) Revenues are recognized when cash is received, and expenses are recognized when cash is paid. b) Revenues are recognized when cash is available, and expenses are recognized when cash is to be paid using current financial resources. c) Revenues are recognized when earned, and expenses are recognized when incurred. d) All of the above are correct. e) Only answers a) and b) are correct

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