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Company A uses the cash basis of accounting and records revenue when cash is received and expenses when cash is paid Whereas Company B uses

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Company A uses the cash basis of accounting and records revenue when cash is received and expenses when cash is paid Whereas Company B uses the accrual basis of accounting and therefore records revenues when cash is received and expenses when they are incurred records revenues when they are earned and expenses when they are incurred records revenue when it is earned and expenses when it is paid records revenues and expenses when the company needs to apply for a loan

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