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Hello, i wanna ask about the difference between accrual and cash basis accounting. For example,During 2016, a company makes credit sales of $500 000, of
Hello, i wanna ask about the difference between accrual and cash basis accounting. For example,During 2016, a company makes credit sales of $500 000, of which $375 000 is collected at year-end. It pays $200 000 in expenses and owes $25 000 electricity used during 2016. What are the cash profit and accrual profit for this? Thanks.
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