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Matt's Painting painted an apartment building for $50,000 in December 2023. In December, Matt incurred total expenses (paint and labor) of $20,000 which he paid,
Matt's Painting painted an apartment building for $50,000 in December 2023. In December, Matt incurred total expenses (paint and labor) of $20,000 which he paid, but Matt did not receive the $50,000 payment for the apartment building job until February 2024. Matt determined that his net income (loss) for December 2023 was ($20,000). This is an example of: Accrual accounting Historical cost principle Cash basis accounting Fair value principle OOOO
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