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The following statements about the cash basis method of accounting are false, except: The exchange of services may lead to gross income to both parties.

The following statements about the cash basis method of accounting are false, except:

The exchange of services may lead to gross income to both parties.
Interest credited to a savings account is not taxed until withdrawn.
Stock received for services rendered are taxed only in the year sold.
Prepaid rent for a 3-year lease may be deducted currently.

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