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Imagine that a company, XYZ Ltd . , sells goods worth $ 5 , 0 0 0 on credit to a customer on December 1
Imagine that a company, XYZ Ltd sells goods worth $ on credit to a customer on December The customer agrees to pay the amount in January According to the accrual concept, when should XYZ Ltd recognize the revenue from this sale, and why? What would be the impact on the financial statements if the company followed the cash basis of accounting instead?
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