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At 1 March 2019, a company sold $1,800 worth inventory to a customer for $2,500 on credit, and it received the customer's payment on 4
At 1 March 2019, a company sold $1,800 worth inventory to a customer for $2,500 on credit, and it received the customer's payment on 4 April 2019. The company used accrual accounting and the financial year ends at 31 March 2019. If the company used cash accounting instead, what would the effect be on the balances of "Cash" and "Sales revenue" accounts for the financial year compare to accrual accounting O Cash balance will be the same under two accounting systems, sales revenue balance is higher in accrual accounting. O Cash balance will be the same under two accounting systems, sales revenue balance is higher in cash accounting. O Balances of both cash and sales revenue account will be the same regardless which accounting system the firm uses. O Cash balance is higher in cash accounting, sales revenue balance is lower in cash accounting
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